DefinitionDwelling Property Coverage Forms — alternative forms to homeowners policies that may be used to insure physical damage to dwellings and personal property. Unlike homeowners forms, these policies do not insure liability or medical payments exposures. There are three dwelling property forms in the Insurance Services Office, Inc. (ISO), forms portfolio: the basic form (DP 00 01), the broad form (DP 00 02), and the special form (DP 00 03). The basic form covers only damage from fire, lightning, and internal explosion, but additional perils can be covered by endorsement. The broad form covers direct damage to dwellings and personal property on a broad named perils basis. The special form covers direct damage to dwellings and appurtenant structures on an all risks basis while covering personal property on a broad named peril basis. Show
Related ProductsCommercial Property For some consumers, a dwelling fire policy is a proper alternative to a homeowners policy. Despite its name, dwelling insurance policies can cover much more than just fire. But this kind of policy isn’t for everyone, so here are the dwelling fire basics. A dwelling fire policy may be beneficial for:
Dwelling Fire Insurance BasicsThe coverage is very similar to a homeowners policy, with one significant difference – a dwelling fire policy is typically used for someone that does not make the property their primary residence. Dwelling policies typically do not provide liability coverage, like some homeowners policy forms, but they can provide other similar coverages to standard homeowners policies. Just like homeowners insurance, there are several different types of dwelling fire policies. DP-1 is known as the basic form, DP-2 is known as the broad form and DP-3 is known as the special form. Each provides a significantly different level of coverage. DP-1: Basic FormThe basic form is a “named perils” policy. The policy explicitly names what perils are covered and typically covers losses due to:
A DP-1 can also provide coverage for your other structures on the property, personal property usual to the occupancy dwelling, fair rental value, debris removal, and improvements, alterations and additions. When a Premium for Extended Coverage is shown in the Declarations, perils such as Windstorm or Hail, Explosion, Riot or Civil Commotion, Aircraft, Vehicles, Smoke, and Volcanic Eruption can also be included (subject to exclusions). You also may be able to include Vandalism or Malicious Mischief. Talk to your agent about including these coverages. Claims under a DP-1 dwelling fire policy are settled on an actual cash value (ACV) basis—however, you may be able to opt for a replacement cost value (RCV) policy for an additional cost. Speak with your agent about replacement cost options. DP-2: Broad FormThe dwelling fire policy broad form is also a “named perils” policy and covers the same perils as the basic form, with additional coverages such as:
Unlike the DP-1 form, the DP-2 form typically settles claims on a replacement cost basis. Loss of rent coverage, additional living expenses, collapse, debris removal, and improvements, alterations and additions may also be included with a DP-2 policy. DP-3: Special FormThe DP-3 form is the most comprehensive dwelling fire coverage available. It is an “open perils” or “all risk” policy, which means real property (dwelling and other structures) will be covered for all types of damage, except exclusions named in the policy. However, damaged personal property (all the items inside the dwelling and other structures) is covered on a “named perils” basis. DP-3 form exclusions may vary, but will typically be some or all of the following:
This is not a complete list of policy exclusions. It is important to review your Dwelling policy to understand exactly what your policy will and will not cover. There also may be optional Endorsements available, to include other specific coverages. If you have questions about Dwelling policies, talk with your insurance agent or insurance company. You may also contact the North Carolina Department of Insurance, Consumer Services Division at: 1-855-408-1212.
The DP-3 form is the most comprehensive dwelling fire coverage available. It is an “open perils” or “all risk” policy, which means real property (dwelling and other structures) will be covered for all types of damage, except those exclusions named in the policy. However, damaged personal property (all the items inside the dwelling and other structures) is covered on a named perils basis. DP-3 form exclusions vary, but will typically include some or all of the following: • War • Water damage • Laws and ordinances • Neglect • Intentional loss • Mold, rust, rot and other gradual losses • Certain types of water damage • Earth movement, such as earthquakes • Governmental action Damages are covered under a RCV basis by default. If you own rental or investment properties, you need to protect them from a host of potential perils, including fire, lightning, vandalism and theft. If your primary residence is located on the rental or investment property, a homeowners policy would cover you from many of the potential risks. But what if you live somewhere else? A dwelling fire policy may be the type of coverage you need to insure your rental or investment property from damages. Just like homeowners policies, there are several different types of dwelling fire coverage. DP-1 is known as the basic form, DP-2 is known as the broad form and DP-3 is known as the special form. Each provides a significantly different level of coverage. Share on FacebookShare on TwitterShare on Linkedin Which of the following may be covered under a DP 3?The DP-3 form is the most comprehensive dwelling fire coverage available. It is an “open perils” or “all risk” policy, which means real property (dwelling and other structures) will be covered for all types of damage, except those exclusions named in the policy.
Which of the following would be covered by the broad theft endorsement on a dwelling policy?Residential Theft Coverage
The broad theft endorsement is only available to owner-occupied dwellings, and can apply to on and off premise theft. Both endorsements provide coverage for theft, attempted theft, and vandalism or malicious mischief as a result of theft.
What is the basic difference between the dwelling DP 2 and DP 3?DP3 Insurance is All Risk Insurance
Dwelling fire insurance policies come in two different policy categories; named peril policies and open peril policies. The DP 1 and DP 2 are named peril policies, while the DP 3 is an open peril policy.
Which of the following would not be covered under Coverage C of the special dwelling form?At the insured's request, Coverage C will apply to personal property of a guest or servant while located on the described location. Personal property of a tenant or boarder is not covered. Damage by wind, hail, weight of ice, snow or sleet is not covered.
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