In a dwelling policy, how is personal liability coverage provided?

In a dwelling policy, personal liability coverage is typically not included automatically; it must be added as an endorsement or purchased as a separate policy. This structure reflects the nature of dwelling policies, which primarily focus on property coverage for residential structures such as homes or apartments.

By requiring personal liability coverage to be added separately, insurers allow policyholders to customize their coverage based on individual needs. This also means that not all dwelling policies are the same, as different homeowners may have various risks and personal circumstances that require unique liability protection.

The other options imply that personal liability coverage is either standard in the policy or tied to specific plans, which does not accurately reflect the structure of dwelling policies. The specificity of having to add it as a supplement enhances consumer choice and encourages policyholders to think more critically about their insurance needs.