What advantage does the DP-3 policy have over DP-1 and DP-2?

The DP-3 policy stands out from the DP-1 and DP-2 policies due to its all-risk approach, which means it covers all perils except those specifically excluded in the policy. This provides homeowners with broader coverage compared to DP-1 and DP-2, which are named peril policies and only cover the specific risks listed in the policy.

This broader coverage in the DP-3 policy allows for increased protection, as it addresses a wider range of potential risks and damages that may occur to the dwelling, offering peace of mind for homeowners. This is particularly beneficial in an unpredictable environment where various unforeseen events can lead to property damage.

In contrast, options related to liability limits, deductibles, or named perils do not capture the essence of the DP-3's primary advantage. The focus on broader coverage through an all-risk framework is a key factor that distinguishes it from the other two policy types, highlighting its comprehensive nature.