Dwelling and Homeowners Policies
Two programs
The dwelling program (DP-1, DP-2, DP-3) covers 1–4 family residences, owner- or tenant-occupied, and includes no liability unless endorsed; it is common for rental dwellings and older homes. The homeowners program adds liability and medical payments: HO-3 (special on the dwelling, broad named perils on personal property), HO-5 (special on both), HO-2 (broad), HO-4 (tenants), HO-6 (condo), HO-8 (older homes, functional replacement cost).
The coverage parts
Coverage A dwelling, B other structures, C personal property, D loss of use, E personal liability, F medical payments to others. Limits for B, C, and D are usually percentages of A (commonly 10%, 50%, 30%). Personal property is generally valued at actual cash value unless a replacement cost endorsement applies, and off-premises property is often limited to a percentage of C. Special limits apply to money, theft of jewelry, theft of silverware, theft of firearms, business property, and watercraft.
Section II
Liability responds to bodily injury or property damage caused by an occurrence and excludes business pursuits, intentional acts, and damage to property in the insured's care. Medical payments is no-fault and excludes the named insured and regular residents.
Traps
The deductible normally applies to A–D but not to liability. Earth movement and flood are excluded in both programs. Ordinance or law is limited. Business pursuits, home-sharing, and rental to others are heavily tested. Personal property follows the insured worldwide; the dwelling is covered only at the residence premises unless endorsed.
Rule of thumb: percentages of Coverage A are the fastest way to sanity-check whether a claim answer is in the ballpark.