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DP-3 is an open peril policy and covers all losses except those excluded in the policy. Its the most comprehensive and expensive of the three options. DP-1 pays claims on an actual cash value (ACV) basis, while DP-2 and DP-3 pay the replacement cost value (RCV) of a claim.
What Does a DP2 Policy Cover? A DP2 policy covers damage to the primary structure as well as other structures on the property, such as sheds, fences, detached garages, and patio coverings.
DP1 is the most basic standard, with the ability for a ship to automatically hold station. DP2 has redundancy, but DP3 has segregated redundancy that would allow for a more serious failure. If human lives are on the line, DP2 or DP3 is required.
Each form offers more protection than the last. While the DP1 covers nine perils, the DP2 offers the same protections as DP1 but covers more perils typically 18. A DP2 policy usually covers the home for damage from: Fire or lightning.
What Is A DP1 Policy? A DP1 policy, also called Dwelling Fire Form 1, is a type of home insurance policy that protects a house from nine named perils most notably fire. Its usually used to insure vacant homes but can also be used for rental properties if landlords are on a tight budget.
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DP 2 - Broad Form DP-2 covers all of the basic perils (including DP-1 extended coverage, vandalism and malicious mischief). It also covers the following perils: Burglary damage. Collapse.
DP3 Policy: Exclusions Although theres an extensive range of perils covered in the event of damage, some perils which can be excluded from policies are: Ordinance or law. Earth movement. Power failure. Water damage.
DP1 only protects against nine perils and usually covers the whole house for its actual cash value, meaning all claims payouts deduct depreciation. For comparison, DP3 is an open perils policy, which means the home is covered for all sources of loss except those the policy names as exclusions.
A DP2 policy insures your property for its replacement cost, which offers the full amount to replace or repair the property with new, similar items. The final form is the DP3 policy, and its the most robust option because it protects against all sources of loss except those listed as exclusions.
DP-3 is an open peril policy and covers all losses except those excluded in the policy. Its the most comprehensive and expensive of the three options. DP-1 pays claims on an actual cash value (ACV) basis, while DP-2 and DP-3 pay the replacement cost value (RCV) of a claim.

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