Which Dwelling Policy is referred to as the Broad Form?

The Broad Form dwelling policy is designated as DP-2. This type of policy is specifically designed to provide more extensive coverage compared to the basic form (DP-1) but does not offer as comprehensive a range as the special form (DP-3). The DP-2 policy includes coverage for both the dwelling and personal property for a wider range of perils.

Under DP-2, it covers named perils such as fire, lightning, explosion, windstorm or hail, smoke, vandalism, theft, and more. This contrasts with the DP-1 policy, which only covers a limited number of perils, and while the DP-3 policy provides open peril coverage for the dwelling, the DP-2 remains distinctly identified as the Broad Form due to its balanced approach to risk management by covering more named perils, thus providing valued protection for policyholders looking for something between basic and comprehensive coverage.

Understanding these distinctions is key when determining the proper level of coverage for a property, making it essential for property producers to recognize the specifics of each policy type.