What Are DP-1, DP-2 and DP-3 Form Policies?
Dwelling fire policies are sometimes abbreviated within the insurance industry, and DP-1, DP-2 and DP-3 are common abbreviations for fairly standard policies. While exact protections can still vary somewhat, most policies that have one of these abbreviations offers protection from a fairly standard set of perils.
DP-1 Basic Form policies tend to be named perils policies, which means they usually only protect against the risks that are listed (or named) in their papers. Most list fire, lightning and internal explosions, and some may add a few additional perils.
DP-2 Broad Form policies are also named perils policies, but they usually cover more perils than DP-1 policies. In addition to the protections that a DP-1 policy affords, a DP-2 policy might also offer coverage for hail and wind, smoke, vandalism and burglary, the weight of snow and ice, freezing pipes, electrical damage and several other risks.
DP-3 Special Form policies frequently are written as open perils policies rather than named perils ones. Open perils policies typically protect against any risks that aren’t specifically excluded in their paperwork. The risks that DP-3 policies exclude often are things like water damage, war, neglect and mold. Many policies list a few other risks in their exclusions.