Dwelling Policy – 3: Special Form
Dwelling Fire Coverage Options
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:
• Water damage
• Laws and ordinances
• 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.