DP-2 (broad dwelling form)

DP-2 (ISO DP 00 02) sits in the middle of the dwelling property program. Like the DP-1, it insures the dwelling and other structures against named perils, but the list is longer. On top of fire, windstorm, explosion, smoke and the other basic causes, it adds items such as falling objects, the weight of ice, snow or sleet, accidental discharge or overflow of water or steam, freezing of plumbing and heating systems, and sudden and accidental damage from artificially generated electrical current. That is close to the list in the HO-2 homeowners form.

Building losses on a DP-2 are typically settled at replacement cost, subject to the policy's conditions, rather than at actual cash value. Fair rental value and additional living expense coverage are part of the form, which matters for a landlord whose tenants must move out after a loss. Personal property, if elected, is usually paid at actual cash value.

Like every dwelling form, the DP-2 does not include personal liability. A landlord who relies on it alone has property protection and no defense or indemnity if a tenant or visitor is hurt. Pair it with a liability policy, or step up to DP-3 if you want open-perils protection on the building. The guide to Dwelling fire policies: DP-1, DP-2 and DP-3 has a side-by-side view.