Final answer:
Dwelling property policies require properties to meet local building codes, ensuring safety features like working utilities, sound construction, and proper smoke detectors and wiring. These characteristics influence the eligibility for coverage and the risk associated with insuring a property.
Step-by-step explanation:
The eligibility requirements for a dwelling property policy often include compliance with local building codes and specifications that ensure the safety and livability of the property. Such codes typically require that the dwelling has running water, a functioning ventilation and heating system, structurally sound construction, installed smoke detectors, and properly installed electrical wiring. A policy can pay out when the dwelling is damaged or burglarized, and these safety measures are considered prerequisites for insurance coverage as they significantly affect the risk associated with insuring the property.