Which statement accurately describes Coverage A in a special form dwelling policy?

Coverage A in a special form dwelling policy is designed to provide broad protection for the dwelling structure itself against a wide range of perils. Specifically, it encompasses all-risk perils, meaning it covers damages caused by any event that is not specifically excluded in the policy. This feature makes it advantageous for homeowners as it offers extensive coverage, ensuring that various unforeseen incidents, such as storms, vandalism, or falling objects, typically resulting in damage to the dwelling, are included under this coverage.

In contrast, the other options are related to more limited scopes of coverage. For instance, stating that it covers fire and theft only would imply a restrictive focus that does not align with the comprehensive nature of a special form dwelling policy. Similarly, the idea that it covers only personal property fails to capture the intent of Coverage A, which is focused on the physical structure of the home itself. Lastly, the mention of liability coverage pertains to a different aspect altogether, as liability coverage is usually found in separate terms within the policy and not under Coverage A. This distinction highlights why the correct statement emphasizes the all-risk nature of Coverage A.