DWELLING POLICIES · 6 MIN READ

DP-1, DP-2, and DP-3: The Three Peril Structures

The dwelling program offers three forms distinguished almost entirely by peril treatment. The DP-1 Basic Form starts as a bare fire policy: its baseline perils are fire, lightning, and internal explosion. Everything else is optional. The Extended Coverage (EC) bundle adds windstorm, hail, explosion, riot and civil commotion, aircraft, vehicles, and smoke. Vandalism and Malicious Mischief (V&MM) is sold as its own separate optional peril — it is NOT part of EC, so graffiti and smashed windows on a DP-1 with EC but no V&MM endorsement are simply not covered. No DP form covers theft of personal property without endorsement, a sharp contrast with homeowners forms. The DP-2 Broad Form is still named-peril but lists roughly 18 perils: the DP-1 base plus EC plus V&MM perils, and then broad-form additions such as damage by burglars (building damage, not the stolen property), falling objects, weight of ice, snow, or sleet, accidental discharge or overflow of water or steam, sudden and accidental tearing apart, cracking, burning, or bulging of heating systems, freezing of plumbing, and sudden and accidental damage from artificially generated electrical current. DP-2 also upgrades the dwelling to replacement-cost settlement subject to the 80% condition. The DP-3 Special Form is open peril on Coverages A and B: all direct physical loss is covered unless excluded, which shifts the burden of proof to the insurer to establish an exclusion. Personal property under Coverage C — if elected — reverts to the broad named-peril list even on DP-3. The open-peril grant is policed by maintenance-type exclusions: wear and tear, deterioration, mechanical breakdown, latent defect, rust, mold, settling, and constant or repeated seepage or leakage of water over 14 or more days. Sudden wind-lifted shingles are covered; a slow leak through a 25-year-old roof is excluded wear and tear. Notably, sinkhole collapse — sudden settlement into a subterranean limestone cavity — is a named peril on DP-2 and DP-3, while earthquake and other earth movement remain excluded and require an endorsement.