Which DP form covers the dwelling under open perils and the personal property on a named peril basis?

Which DP form covers the dwelling under open perils and the personal property on a named peril basis?

• A. DP-2
• B. DP-1
• C. HO-3
• D. DP-3

Answer: (D)

This question is about how peril coverage is split between the dwelling and personal property in dwelling policies. In the Special Form, the dwelling and other structures are covered on an open (special) perils basis, meaning a wide range of direct losses are covered unless specifically excluded. Personal property, on the other hand, is covered on a named-peril basis, so only the perils listed in the policy apply to those contents. That combination is what the question describes: a form where the dwelling is covered for open perils while the personal property is covered only for listed perils. The Special Form (DP-3) provides exactly that. The other options don’t fit this specific pairing—the basic and broad DP forms generally apply named perils to both dwelling and contents, and HO-3 is a homeowners policy (not a DP form).

This question is about how peril coverage is split between the dwelling and personal property in dwelling policies. In the Special Form, the dwelling and other structures are covered on an open (special) perils basis, meaning a wide range of direct losses are covered unless specifically excluded. Personal property, on the other hand, is covered on a named-peril basis, so only the perils listed in the policy apply to those contents.

That combination is what the question describes: a form where the dwelling is covered for open perils while the personal property is covered only for listed perils. The Special Form (DP-3) provides exactly that. The other options don’t fit this specific pairing—the basic and broad DP forms generally apply named perils to both dwelling and contents, and HO-3 is a homeowners policy (not a DP form).