Which kind of insurance excludes coverage for theft?

The dwelling policy is designed to provide coverage for a structure that is rented or owned, often for residential purposes, but it specifically excludes theft coverage. This policy mainly focuses on protecting the building itself from certain risks such as fire or wind damage. For individuals seeking extended protection, including theft, a homeowner's policy would typically be more suitable as it covers personal property and liability, including theft.

By understanding that a dwelling policy is limited in the scope of risks it covers, particularly regarding personal property like theft, it highlights the gaps in its coverage. Therefore, if a policyholder needs protection against theft, they would need to obtain additional coverage or choose a different type of policy, like a homeowners policy, which includes such protections. This distinction is crucial for individuals when assessing their insurance needs to ensure they have adequate protection against various risks.