Final answer:
A dwelling policy could be used instead of a homeowners policy for several reasons, such as for rental properties or if the home doesn't qualify for homeowners insurance. However, the choice of a dwelling policy is not due to wanting broader coverage at a lower premium, as dwelling policies offer narrower coverage compared to homeowners policies.
Step-by-step explanation:
The question asks about the situations where a dwelling policy might be preferred over a homeowners policy. All of the reasons listed are potential cases where a dwelling policy would be used, except for one: 'the insured wanted broad coverage for a lower premium.' In general, dwelling policies are more basic and offer narrower coverage compared to homeowners policies, which are typically more comprehensive. They are often chosen when broader coverage is unnecessary or when a property does not qualify for a homeowners policy. For instance, they can be used for rental properties where the owner does not need to insure the belongings of the renters or does not require personal liability coverage. On the other hand, someone seeking broader coverage would likely choose a homeowners policy despite the potentially higher premiums.