What does DP-3 Open Perils exclude?

The DP-3 policy, which is a type of dwelling policy, primarily provides coverage on an open perils basis for the structure of the home. However, it does have certain exclusions that are important to understand.

The correct choice refers to the exclusion of war and flooding. These risks are typically excluded from most insurance policies because they involve large-scale events that could lead to catastrophic financial losses, which insurers often prefer to avoid. Instead of covering these perils directly, policyholders are generally encouraged to seek separate types of coverage, such as flood insurance, to address flood risk.

In contrast, personal property theft and burglary damages are generally covered under a DP-3 policy, unless any specific exclusions apply. Fire and smoke damage is also typically covered, as these are common risks that homeowners face and are generally expected to be included in dwelling coverage. Understanding these exclusions helps policyholders to identify the gaps in their coverage and make informed decisions regarding additional policies they might need.