5.3 Dwelling Coverage Forms

Although the Basic Form (DP–1), Broad Form (DP–2), and Special Form (DP–3) provide the same general categories of coverage, each form applies that coverage differently. The primary distinctions are the perils covered and the method used to determine the amount payable for a covered property loss.

DP–1 (Basic Form)

As its name suggests, the Basic Form (DP–1) provides the most limited level of Dwelling coverage. It insures the dwelling, other structures, and personal property against three named perils: fire, lightning, and internal explosion. An internal explosion is an explosion that originates within the covered dwelling, another covered structure, or covered personal property.

Additional Perils

For an additional premium, the insured may add Extended Coverage (EC) to the Basic Form. This option expands the policy to cover losses caused by the following named perils:

• Windstorm or hail: Damage to the interior of a building is covered only when wind or hail first damages the exterior and creates an opening through which the elements enter. For example, rain or hail that damages carpeting after entering through a window left open would not be covered.
  • Coverage also excludes windstorm or hail damage to outdoor awnings, radio and television antennas, canoes, and rowboats.
• Aircraft
• Riot or civil commotion
• Vehicles: This includes damage caused when a vehicle strikes the dwelling.
  • Coverage does not apply when the vehicle is owned or operated by the insured or a resident of the household.
  • Damage caused by any vehicle to fences, driveways, and walkways is also excluded.
• Volcanic eruption: This peril does not include damage caused by an earthquake.
• Explosion: This peril replaces and broadens the Basic Form's internal explosion coverage by covering both internal and external explosions.
  • Explosion coverage does not include electrical arcing, the rupture of water pipes or pressure-relief devices, or the explosion of steam boilers.
• Smoke: Coverage does not apply to smoke damage resulting from agricultural smudging or industrial operations.

When the Basic Form includes coverage for fire and the Extended Coverage perils, the insured may purchase Vandalism or Malicious Mischief (VMM) coverage for an additional premium. VMM coverage does not apply to vandalism or malicious mischief occurring after the dwelling has been vacant for more than 60 consecutive days. It also excludes losses caused by theft, larceny, burglary, or pilferage. However, the policy does cover damage burglars cause to the building while entering, leaving, or attempting to enter it.

DP–2 (Broad Form)

The Broad Form (DP–2) insures the dwelling, other structures, and personal property against specified named perils. It automatically includes the basic perils available under the DP–1—fire, Extended Coverage (EC), and vandalism or malicious mischief (VMM)—along with several additional perils, including:

• Damage caused by burglars: Covers physical damage a burglar causes to covered property but does not cover the stolen property itself. This coverage does not apply when the dwelling has been vacant for more than 60 consecutive days.

Example

A burglar forces open the insured's door, damages a locked armoire while attempting to open it, and steals silverware. Under the Broad Form (DP–2), the Damage by Burglars peril covers the damage to the door and armoire but does not cover the stolen silverware. Under the Basic Form (DP–1), vandalism or malicious mischief coverage would generally cover the damage caused while the burglar entered the building, such as the broken door. However, it would not cover the damaged armoire or the stolen silverware.

The Broad Form (DP–2) also covers the following named perils:

• Falling objects: Covers damage caused by an object from outside the dwelling that falls onto the building, such as a tree, ice falling from an aircraft, or space debris. Interior damage is covered only when the falling object first damages the building's roof or exterior wall.

  • Coverage does not apply to outdoor antennas, awnings, or fences.

• Weight of ice, snow, or sleet: Covers damage caused by the weight of accumulated ice, snow, or sleet.

  • Coverage does not apply to awnings, fences, patios, or swimming pools.

• Accidental discharge or overflow of water or steam: Covers resulting damage when water or steam accidentally escapes from a plumbing, heating, air-conditioning, or automatic fire-protective sprinkler system or from a household appliance. The policy covers the resulting property damage but not damage to the system or appliance that released the water or steam.

  • Coverage does not apply to damage caused by constant or repeated leakage over time.
  • Coverage also does not apply to a building that has been vacant for more than 60 consecutive days.

• Sudden and accidental tearing apart, cracking, burning, or bulging: Covers damage caused by the sudden and accidental failure of a steam or hot-water heating system, air-conditioning system, automatic fire-protective sprinkler system, or water-heating appliance.

• Freezing: Covers the freezing of plumbing, heating, air-conditioning, or automatic fire-protective sprinkler systems and household appliances. To qualify for coverage, the insured must use reasonable care to maintain heat in the building or shut off the water supply and drain the affected systems and appliances. Automatic fire sprinkler systems do not have to be drained.

• Sudden and accidental damage from artificially generated electrical current: Covers damage caused by human-produced electricity, including power surges.

  • Coverage does not apply to tubes, transistors, electronic components, or circuitry contained in appliances, fixtures, computers, home entertainment systems, or similar equipment.

  Note

  Under the Dwelling policy forms, the definitions of plumbing systems and household appliances do not include sumps, sump pumps, or related equipment. Roof drains, gutters, and similar fixtures are also excluded from these definitions.

Broadened Coverage

The Vehicle peril provided by the Broad Form (DP–2) is broader than the coverage available under the Basic Form (DP–1). Under the DP–2, damage to a fence, driveway, or walkway is excluded only when it is caused by a vehicle owned or operated by the named insured or a resident of the household.

DP–3 (Special Form)

Coverage for Dwelling and Other Structures (Coverages A and B)

The Special Form (DP–3) provides the broadest protection available under the Dwelling Program. Unlike the Broad Form (DP–2), the DP–3 covers the dwelling and other structures on an open perils basis. This means it covers direct physical loss unless the cause of loss is specifically excluded by the policy.

The DP–3 excludes losses caused by or involving:

• Perils listed in the policy's General Exclusions section
• Collapse, except to the extent coverage is provided under the policy's Other Coverages
• Freezing, thawing, or the weight or pressure of water or ice affecting patios, fences, swimming pools, foundations, piers, docks, retaining walls, or other structures that support a building
• Theft of property that is not part of a covered building or structure
• Theft occurring in or to a dwelling or structure under construction
• Wind, hail, ice, snow, or sleet damage to trees, shrubs, plants, lawns, and outdoor radio or television antennas and aerials
• Vandalism or malicious mischief, theft or attempted theft, and any resulting loss when the dwelling has been vacant for more than 60 consecutive days immediately before the loss
• Constant or repeated seepage or leakage of water or steam over time from a plumbing, heating, air-conditioning, or automatic fire-protective sprinkler system or household appliance
• Wear and tear, deterioration, or mechanical breakdown
• Smog, rust, corrosion, mold, and wet or dry rot
• The discharge, dispersal, seepage, migration, release, or escape of pollutants, unless caused by a named peril that applies to personal property
• Smoke from agricultural smudging or industrial operations
• Settling, shrinking, bulging, cracking, or expansion of foundations, walls, floors, pavement, or patios
• Birds, vermin, rodents, insects, domestic animals, or infestation by any animal

Example

Unlike the DP–1 and DP–2, the DP–3 may cover interior damage—such as damage to carpeting—when wind or rain enters through a window that was accidentally left open. Coverage applies because the DP–3 does not specifically exclude this type of loss, provided the insured did not intentionally cause the damage. The DP–3 also covers damage resulting from the accidental discharge or overflow of water or steam from a household system or appliance, unless another policy exclusion applies. When necessary to access and repair the source of the covered loss, the policy may also pay the reasonable cost of tearing out and replacing part of the building.

Coverage for Personal Property (Coverage C)

Under the Special Form (DP–3), personal property is insured on the same named-perils basis and subject to the same coverage provisions as personal property insured under the Broad Form (DP–2).

Note

None of the Dwelling policy forms automatically insure personal property against theft. Theft coverage must be added by endorsement.

Peril	DP–1	DP–2	DP–3 Buildings (Coverages A and B)	DP–3 Personal Property (Coverage C)
Open perils			✓
Fire and Lightning	✓	✓	#	✓
Internal Explosion	✓
Windstorm and Hail	✓*	✓	#	✓
Aircraft	✓*	✓	#	✓
Riot/Civil Commotion	✓*	✓	#	✓
Vehicles	✓*	✓	#	✓
Volcanic Eruption	✓*	✓	#	✓
Explosion	✓*°	✓°	#°	✓°
Smoke	✓*	✓	#	✓
Vandalism and Malicious Mischief (VMM)	✓**	✓	#	✓
Burglar Damage		✓	#	✓
Falling Objects		✓	#	✓
Weight of Ice, Snow, or Sleet		✓	#	✓
Accidental Discharge or Overflow of Water or Steam		✓	#	✓
Accidental Tearing, Cracking, or Burning		✓	#	✓
Freezing		✓	#	✓
Electrical Current		✓	#	✓

• Extended coverages available at additional cost

** Available at additional cost, separate from EC perils

° Replaces coverage for internal explosion

'#' Included in open perils coverage