All of the following are characteristics of the dwelling policy EXCEPT:

The correct assertion here is that the dwelling policy does not require the dwelling to be owner-occupied. This characteristic is significant because dwelling policies can also be used for properties that are rented or not occupied by the owner. This type of policy is designed to insure residential properties that can provide coverage for the building itself, regardless of the occupant's status as an owner or a tenant.

In contrast, the other characteristics listed explain essential features of dwelling policies. While it is common for dwelling policies to cover single-family homes, they also apply to properties involving two to four units, so stating that the dwelling must be a single-family home is incorrect. Additionally, dwelling policies can indeed offer replacement cost coverage depending on the specifics of the policy, reassuring homeowners they can recover the value of their investment in the event of a covered loss. Finally, personal liability coverage is not typically included in a standard dwelling policy, focusing instead on protection for the building itself rather than the liabilities that might arise from it. Therefore, recognizing that owner-occupancy is not a requirement aligns with the broader applicability of dwelling policies beyond just owner-occupied residences.