Dwelling and Homeowners Policies
Dwelling forms
The DP-1 (basic), DP-2 (broad), and DP-3 (special) insure a dwelling the insured may rent out. Coverages: A dwelling, B other structures, C personal property, D fair rental value, and E additional living expense in some forms. Dwelling policies generally contain no liability coverage unless a liability endorsement is added - a favorite trap.
Homeowners forms
HO-2 (broad) and HO-3 (special) are owner-occupied forms. HO-3 insures the dwelling and other structures on an open-perils basis but personal property for named perils only; HO-5 is open perils on both. HO-4 (renters) and HO-6 (condo/co-op) have no Coverage A - the renter or unit owner insures contents, improvements and betterments, loss of use, and liability. HO-8 covers older homes and settles on a repair, replacement, or functional replacement cost basis for a limited peril list.
Common relationships (verify the form given): B = 10% of A, C = 50% of A, D = 30% of A. Section II provides Coverage E personal liability and Coverage F medical payments to others - no fault, but not payable to insureds.
Exclusions and conditions
Both sections exclude ordinance or law, earth movement, water damage (flood, surface water, sewer backup unless endorsed), power failure, neglect, intentional loss, war, and nuclear hazards; mold is limited. Conditions include duties after loss, loss settlement (replacement cost for A and B; ACV for C unless endorsed), appraisal, other insurance, and the mortgage clause.
Trap: 'residence premises' requires the insured to reside there - renting the whole house, or keeping more than incidental roomers, changes the risk and defeats coverage.
Rule of thumb: for any homeowners question, first ask whether Coverage A applies at all (HO-4 and HO-6: no).