What type of perils does DP-3 (Special Form) cover?

The DP-3 (Special Form) policy is categorized under open perils coverage, which means it provides protection against all types of perils unless they are specifically excluded in the policy. This is a broader and more comprehensive form of coverage compared to other policies that provide named perils, which only cover specific risks explicitly listed in the policy documents.

For instance, common exclusions in a DP-3 policy can include perils like earthquakes or flooding, but as long as the peril is not expressly excluded, it is typically covered. This feature makes the DP-3 particularly appealing for property owners who seek extensive protection for their home and personal belongings. Understanding this distinction is critical when assessing the level of risk an insurance product addresses and how that aligns with a property owner's needs.