Which scenario would NOT be appropriate for a dwelling policy?

A dwelling policy is typically designed for properties that are either owner-occupied or occupied by tenants in a manner that does not constitute a commercial rental operation. It can cover properties that are rented out on a limited basis, such as a home that is partially rented out or a vacation home that is used only intermittently.

In contrast, a home that is wholly rented out generally requires a different type of insurance policy, such as a landlord policy. This is because a owner-occupied dwelling or a part-time rental does not carry the same risks as a property that is fully operated as a rental business, where there tends to be higher occupancy and potential liability issues involved. Therefore, a dwelling policy is not suitable for properties being entirely dedicated to rental purposes, as the risks and needs for coverage significantly differ from those of a partially rented or owner-occupied dwelling.