By What Other Name Is the Dwelling Form DP-2 Known?

Dwelling insurance forms safeguard property by offering financial protection against damage or loss from various unexpected events. These forms address different levels of risk and property types. Understanding the distinctions among these policies is important for property owners seeking to protect their investments effectively. Each form provides a specific scope of coverage, tailored to diverse property needs and owner situations.

The DP-2 Dwelling Form

The Dwelling Property 2 (DP-2) form is known as the “Broad Form” dwelling policy (Form DP 00 02). This designation reflects its expanded coverage compared to more basic options. It is often used for non-owner-occupied properties, such as rental homes or seasonal residences. The DP-2 offers a balanced level of protection, providing more coverage than basic forms but less than the most comprehensive options. It helps landlords protect their income-generating properties against various perils.

The “Broad Form” name comes from the specific perils it covers, which are explicitly listed. Unlike policies covering only a few basic risks, the DP-2 includes a broader array of named events. This makes it a suitable choice for property owners seeking more extensive protection than minimal options, without needing the broadest coverage. It insures the property for its replacement cost, covering the full amount to repair or replace damaged property with new, similar items, without deducting for depreciation.

Coverage Provided by DP-2

A DP-2 policy details specific perils and coverages, extending beyond basic protections. It covers risks like fire, lightning, and internal explosions, found in fundamental policies. The DP-2 also includes perils such as windstorms, hail, smoke, aircraft damage, and vehicle damage. Other covered events encompass falling objects, freezing of household systems, and the sudden tearing apart, cracking, burning, or bulging of heating or air conditioning systems.

DP-2 policy protections extend to the weight of ice, snow, or sleet, accidental discharge or overflow of water or steam, and sudden damage from artificially generated electrical current. Vandalism and malicious mischief are also included, covering intentional property damage. Beyond these perils, a DP-2 policy includes specific coverage sections: Coverage A for the dwelling, Coverage B for other structures like detached garages or sheds, and Coverage C for personal property. Coverage D addresses fair rental value, compensating for lost rental income if a covered peril makes the property uninhabitable, which benefits landlords.

Distinguishing DP-2 from Other Dwelling Forms

Understanding the DP-2 form involves recognizing its place among dwelling policies, especially compared to DP-1 and DP-3 forms. The DP-1, or “Basic Form,” offers the most limited coverage, covering only a few named perils like fire, lightning, and internal explosions. A key difference is that DP-1 policies settle claims based on actual cash value, accounting for depreciation, while DP-2 policies provide replacement cost coverage for the dwelling and other structures. This means the DP-2 offers a more comprehensive payout for covered structural damage.

The DP-2 stands apart from the DP-3, or “Special Form,” primarily in its approach to covered perils. While the DP-2 is a “named perils” policy, covering only listed events, the DP-3 is an “open perils” or “all-risk” policy for the dwelling and other structures. An open perils policy covers all causes of loss unless specifically excluded, offering the broadest protection. This provides the DP-3 a more extensive scope of coverage, as any peril not explicitly excluded is covered, unlike the DP-2 where only specified perils are included.