Can a dwelling policy be issued to cover just the property owned by tenants?

A dwelling policy is designed to provide insurance coverage for residential properties, including those that may be rented out to tenants. The correct assertion is that a dwelling policy can indeed be issued to cover just the property owned by tenants, given that the right coverage is specified and selected.

This option highlights the flexibility within insurance policies, allowing for different scenarios and needs. Tenants often possess personal property such as furniture, clothing, and appliances that may require coverage separate from that of the landlord's property. With the appropriate endorsements or modifications, a dwelling policy can be tailored to include tenants’ personal property, ensuring they have the necessary protection against risks such as theft or damage.

While other choices misconstrue the scope of dwelling policies, option B accurately reflects the adaptability of insurance products to cater to various individual circumstances, thus affirming its correctness.