Which statement is true regarding Dwelling policies?

The correct choice identifies an important aspect of Dwelling policies, specifically regarding Coverage C. Under these policies, Coverage C, which pertains to personal property, does indeed apply while the insured property is located at the described location of the dwelling. This means that personal property is covered when it is situated within that designated area, providing protection for belongings inside the dwelling.

Coverage A typically covers the structure itself against various risks, not solely fire-related damages, making the first statement inaccurate. As for Coverage B, it actually includes coverage for detached structures, so the assertion that it excludes them is also incorrect. Regarding the statement about personal liability, Dwelling policies do not automatically include liability coverage, as this is often found in a separate policy or endorsement. Therefore, the recognition of Coverage C's application at the described location is essential for understanding the specifics of Dwelling policies in property insurance.