How many units does a dwelling policy cover for residential properties?

A dwelling policy typically covers residential properties that have up to four units. This kind of policy is designed for properties that are not classified as commercial but may include multiple residential living spaces, such as duplexes, triplexes, or fourplexes.

Understanding the coverage limits of a dwelling policy is crucial. If a property has more than four units, it usually falls under a different type of insurance policy, such as a commercial policy, due to the increased complexity and risk associated with insuring larger residential complexes. Therefore, the coverage delineation is essential for ensuring that the correct insurance type is used for the appropriate property size. This is why the answer identifying coverage for four units aligns with the defined scope of a dwelling policy.