• Internal explosion, such as a stove or water heater
There are two optional endorsements available with DP-1 coverage:
• Vandalism or malicious mischief (V&MM)
• Extended coverage, which includes damages due to the following:
o Hail or windstorms
o Other explosions
o Riot/civil commotion
o Aircraft or vehicles
o Volcanic eruptions
Claims under a DP-1 policy are settled on an actual cash value (ACV) basis by default—however, you can sometimes opt for a replacement cost value (RCV) policy for an additional cost.
The DP-1 form is usually the form of choice for vacant homes or properties, and it may be the only option for these dwellings.
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.