Dwelling Policy
The dwelling program
The Dwelling Property forms (DP-1 basic, DP-2 broad, DP-3 special) insure a dwelling used principally for residential purposes: owner-occupied, rented to others, or kept as a seasonal or second home. Because these are monoline property forms, they include no personal liability or medical payments coverage unless Liability (Coverage L) and Medical Payments (Coverage M) are added by endorsement.
Coverages
A is the dwelling; B other structures (typically 10 percent of A); C personal property (typically 50 percent of A, with a limited amount for property away from the premises); D fair rental value when the dwelling is rented to others; E additional living expense when the insured occupies the dwelling. The DP-1 covers a short named-peril list plus extended coverage; the DP-2 adds broad perils such as falling objects, weight of ice snow or sleet, accidental discharge of water, and freezing; the DP-3 insures the dwelling and other structures on a special basis while personal property stays named peril.
Conditions to know
Vacancy for more than 60 consecutive days can suspend vandalism and glass coverage. Property of others, outdoor equipment and rental income each carry sub-limits, and a mortgage clause protects the lender.
Traps
The dwelling policy has no Section II liability unless endorsed; the DP-1 is named peril on everything; off-premises personal property is limited to a percentage of Coverage C; and a dwelling rented to tenants is eligible, unlike an HO-3.
Rule of thumb
Read the occupancy first: owner-occupied homeowner means a homeowners form; a rented house, seasonal cabin or dwelling under renovation means a dwelling form, with a liability endorsement if liability protection is needed.