What type of losses does the DP-3 policy cover?

The DP-3 policy, often referred to as the Special Form Dwelling policy, provides coverage for all risks of physical loss or damage unless specifically excluded in the policy. This means that the policy is designed to offer broader protection compared to other dwelling policy forms, such as DP-1 (Basic Form) or DP-2 (Broad Form), which only cover named perils.

This all-risks coverage is beneficial for policyholders, as it protects against a wide array of potential hazards, ensuring that they have financial support for various unpredictable events that could result in property damage. The exclusions are clearly stated in the policy, and common exclusions typically include things like wear and tear, neglect, or certain types of water damage. Therefore, selecting this option aligns perfectly with the comprehensive nature of the DP-3 policy, making it the accurate choice for understanding the extent of its coverage.