DP 3 – Special Form
This insures the dwelling and other structures on an all risk basis.
If personal property, Coverage C, has been purchased, that coverage is only on a broad form basis.
All risk coverage means coverage against loss caused by any accidental external circumstance subject to specific exclusions.
Additional Coverage in Dwelling Program –
1) Debris Removal – this states that the company will pay the cost of cleaning up the property after a loss, subject to a policy limit. These expenses are included w/in the limit of coverage for that loss.
2) Fire Dept. Service Charge – the limit of cover is $500.
3) Trees, Plants, Shrubs & Lawns – Under DP 1, no coverage. Under DP 2 and 3, coverage is provided on a named peril basis but excludes loss caused by wind, hail, weight of ice, sleet and snow and vehicle of insured or tenant. Coverage is in the amount of 5% of the dwelling amount as an aggregate total, but not more than $500 per item.
Loss Settlement in Dwelling Program – Under DP 1, losses are on a A.C.V. basis only. Under DP 2 and 3, buildings under Coverage A and B are at replacement cost w/out deduction for depreciation, provided the insured is carrying the sufficient amount of insurance. Personal Property Coverage C, will be on a A.C.V. basis only.
General Exclusions for DP 1, 2 and 3 –
1) Cost of repair, construction, or demolition regulated by any ordinance or law.
2) Earth movements unless a fire ensues.
3) Water damage, meaning flood and the backup of sewers or drains.
4) Neglect of property after a loss.
Property Not Covered Under DP 1, 2 & 3 –
1) Accounts, bills, deeds, evidences of debt, money, securities, bullion and manuscripts.
2) Animals, birds and fishes.
3) Aircraft and motor vehicles.
4) Boats, other than rowboats and canoes. Rowboats and canoes can be covered on-premises only.
* A DP 1 is designed for older dwellings, not considered eligible for replacement cost coverage.
* Functional replacement cost endorsement – this is for the replacement w/similar materials but of today’s standards
* Cancellations are as follows:
15 days for non-payment
30 days for any other reason
non-renewal cancellations are @ least 45 days but not more than 60
* The term all-risk has been replaced today by risk of direct physical loss or open perils.