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Which statement BEST describes Coverage C — Personal Property on an ISO DP-3 Special Form?
Optional coverage; if the insured elects a limit, it is written on a named-perils basis even though the dwelling is open perils
BAutomatically included at 50% of Coverage A and written on an open-perils basis matching the dwelling
CAutomatically included at 75% of the Coverage A dwelling limit and written on the broad named-perils list of covered causes of loss applicable to contents
DMandatory on every DP-3 and always written on an open-perils basis identical to Coverages A and B
Why this is the answer
Unlike the Homeowners forms — which automatically include Coverage C — Personal Property at 50% of Coverage A — the ISO Dwelling forms make Coverage C optional. The insured must elect a Coverage C limit. Even on a DP-3 Special Form, where the dwelling is written open-perils, Coverage C reverts to the broad named-perils list. Settlement on Coverage C is always ACV regardless of which DP form is used (ISO DP 00 03 Section I Coverage C).
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