Which dwelling policy coverage provides protection for contents damaged by fire?

The correct answer focuses on Coverage C, which is specifically designed to provide protection for personal property, including contents that may be damaged by fire. In a dwelling policy, Coverage C addresses the belongings owned by the insured, such as furniture, clothing, and other personal items, safeguarding them from various perils, including fire.

Coverage A typically provides protection for the dwelling itself, covering the structure where the insured resides. Coverage B covers other structures on the property that are not attached to the main dwelling, such as sheds or detached garages. The mention of "up to 4 units" refers to the dwelling's capacity and does not directly relate to the coverage for contents damaged by fire.

Thus, Coverage C is the correct choice because it directly addresses the need for protection of personal property from specific risks, such as fire damage.