Dwelling and Homeowners Policies
The forms
Dwelling: DP-1 basic, DP-2 broad, DP-3 special. Homeowners: HO-2 broad, HO-3 special (open peril on the dwelling, named peril on personal property), HO-5 comprehensive, HO-4 renters, HO-6 condominium unit owners, HO-8 modified for older homes. HO-3 and HO-5 are the most tested.
The coverage structure
Coverage A dwelling, B other structures (typically 10% of A), C personal property (typically 50% of A), D loss of use, E personal liability, F medical payments to others. HO-4 and HO-6 have no Coverage A or B, which is a favorite trick.
Special limits and settlement
Personal property sub-limits apply to money, securities, jewelry theft, firearms theft, silverware theft, and business property. Standard HO forms settle the dwelling at replacement cost only if the limit is at least 80% of full replacement cost; otherwise the loss is settled at actual cash value or proportionally reduced. Contents are generally ACV unless replacement cost is endorsed.
Common exclusions
Flood, earth movement, ordinance or law (limited extension), neglect, intentional loss, and water backup unless endorsed. Vacancy conditions and the 60-day vacancy rule appear often.
Rule of thumb: if the question says "the dwelling is insured for less than 80% of replacement cost," expect an ACV or reduced settlement answer. If it says "sewer backed up into the basement," expect no coverage without endorsement.