Who is generally covered under a Dwelling Policy?

A Dwelling Policy typically offers coverage not just to the named insured but also extends to their immediate family members who reside in the household. This is an important aspect of the policy because it recognizes the household dynamics and includes family members who may also be present on the property.

This coverage includes protection against various perils and potential liabilities that may arise from incidents occurring on the premises. By including immediate family, the policy ensures that those living together in the home are protected under the same insurance umbrella, which aligns with the principles of family protection found in most homeowners' insurance programs.

Options focusing solely on the named insured, all residents, or just tenants do not accurately reflect the intent and coverage scope of a standard Dwelling Policy. The limitation seen in those alternatives could leave out critical individuals who might need coverage in case of an incident, thus emphasizing why option B is the right choice.