Which policy specifically insures dwellings and can also cover personal contents?

The choice of "Dwelling and Contents" correctly identifies a type of policy that specifically provides coverage for both the structure of a dwelling and the personal contents within it. This type of insurance is designed to protect homeowners against losses related to the physical dwelling itself—such as damages from fire, theft, and certain natural disasters—as well as to cover personal belongings inside the home, like furniture, electronics, and clothing.

On the other hand, homeowners insurance can also cover dwellings and personal property but encompasses a broader range of coverages, including liability protection and additional living expenses. Personal liability insurance focuses strictly on the financial protection from claims alleging that a policyholder's negligence caused bodily injury or property damage to others, leaving out coverage for dwellings and personal property. Commercial lines refer to insurance policies designed for businesses rather than residential properties, making them unsuitable for insuring a private dwelling and its contents.

Thus, "Dwelling and Contents" is the most accurate answer to reflect a policy that specifically targets the needs of homeowners regarding both the structure of their homes and their personal items.