Which of the following is NOT a reason a home would be insured under a Dwelling policy rather than a Homeowners policy?

The choice indicating that the dwelling has only one unit is not a reason for insuring a home under a Dwelling policy rather than a Homeowners policy because both types of coverages can apply to single-family homes. In fact, Homeowners policies are designed primarily for owner-occupied residences, which typically includes single-unit dwellings.

On the other hand, the other options highlight circumstances that would more clearly necessitate the use of a Dwelling policy. For instance, a seasonal dwelling that is not used year-round might not fit the typical usage patterns of a Homeowners policy, which is geared towards year-round residency. Similarly, if the insured is choosing not to have theft or liability coverage, a Dwelling policy can be tailored to exclude those, while Homeowners policies usually include them. Lastly, rental properties, which are often occupied by tenants rather than the owner, are commonly insured under a Dwelling policy, as Homeowners policies primarily cover owner-occupied residences. Therefore, the key reasons for opting for a Dwelling policy typically involve specifics of occupancy and coverage needs, while having only one unit is not a deciding factor.