How often can dwelling policy rates change?

The correct option highlights that dwelling policy rates can change at the time of renewal based on the assessment of risk and prevailing market conditions. This is a standard practice in insurance, where insurers periodically review the risk associated with each property and consider broader market trends when determining premiums.

When a policy is up for renewal, the insurer evaluates any changes that might have occurred over the past policy term, such as modifications to the property's condition, adjustments in claims history, shifts in local crime rates, and even changes in the insurance market overall. If the insurer finds that the risk has increased or decreased significantly, they can adjust the rates accordingly.

This understanding is crucial for policyholders and those studying insurance, as it emphasizes the dynamic nature of insurance rates and the importance of maintaining accurate records and communication with their insurers throughout the policy year. The other options suggest either static rates or overly frequent changes that don’t align with standard insurance practices.