Which of the following is covered under a dwelling policy?

The correct answer is the scenario where the dwelling is rented to a neighbor for use as a private garage. A dwelling policy provides coverage for residential structures and can include situations where the property is rented for residential purposes, such as when it is being used as a private garage, even if that garage is used by a neighbor. This aligns with the primary purpose of a dwelling policy, which is to insure homes and residential properties.

When considering the other scenarios, they fall outside the scope of coverage typically provided by a dwelling policy. For instance, using a dwelling to house a manufacturing operation or as part of a farming operation involves commercial activities, which are not covered under standard dwelling policies. Similarly, operating a retail business from the property also constitutes a commercial use, which is not included in the coverage of a dwelling policy, as these activities pose different risks that require specialized commercial coverage.