Describe the DP-3 dwelling policy form.

Describe the DP-3 dwelling policy form.

• A. Basic perils for dwelling only
• B. Broad coverage for dwelling and other structures with added perils for contents
• C. Open-perils for dwelling and other structures; contents usually on named perils
• D. Contents only

Answer: (C)

DP-3, often called the Special Form, covers the dwelling and other structures on an open-perils basis, meaning most direct losses are covered unless a specific exclusion applies. Contents, however, are insured on a named-perils basis, so personal property protection is limited to the hazards listed in the policy. This combination—open perils for the structure and named perils for contents—is what the description describes as the best match. The other options describe basic or broad forms or limit protection to contents only, which doesn’t fit the DP-3 structure.

DP-3, often called the Special Form, covers the dwelling and other structures on an open-perils basis, meaning most direct losses are covered unless a specific exclusion applies. Contents, however, are insured on a named-perils basis, so personal property protection is limited to the hazards listed in the policy. This combination—open perils for the structure and named perils for contents—is what the description describes as the best match. The other options describe basic or broad forms or limit protection to contents only, which doesn’t fit the DP-3 structure.