What is a significant characteristic that a dwelling policy lacks?

A significant characteristic that a dwelling policy lacks is its occupancy requirement. Dwelling policies are designed for buildings that are rented out or not occupied for extended periods and therefore have fewer restrictions on occupancy compared to standard homeowners policies.

In a typical homeowners policy, there may be stipulations regarding how the home must be occupied, such as being owner-occupied or meeting certain residency requirements. However, dwelling policies allow for various living arrangements, accommodating properties that may be seasonal or rental units without enforcing strict occupancy mandates.

The other options involve features or coverages that can be associated with dwelling policies or added through endorsements. For instance, while a replacement cost endorsement can be added to some dwelling policies, it is not an inherent part of the dwelling policy itself. Flood coverage is generally not included in standard dwelling policies and would require a separate flood insurance policy. A theft protection clause can also be included, but it is not a standard feature of all dwelling policies. Thus, the absence of an occupancy requirement stands out as a defining characteristic of dwelling policies.