In what scenario might a dwelling policy be more suitable than homeowners insurance?

A dwelling policy is more suitable than homeowners insurance primarily in situations where the property is not owner-occupied, such as rental properties or second homes. This is because dwelling policies are specifically designed to provide coverage for residential structures that are either rented out to tenants or used as vacation homes, where the owner does not reside on the premises.

Homeowners insurance, on the other hand, typically assumes that the insured property is owner-occupied and includes coverage for personal belongings as well as liability protection for homeowners who reside in their home. When the property is not occupied by the owner, it may not meet the requirements or intended use of a homeowners policy, and the risks involved in such situations—like tenant-related issues or vacancy—are better addressed by a dwelling policy.

The other scenarios mentioned are less suited for a dwelling policy. Owner-occupied properties, high market value homes, and instances requiring broader coverage may call for homeowners insurance or specialized coverage types that cater to specific needs, not managed effectively by a dwelling policy.