DP-2 – Dwelling Fire Broad Form
Definition:
A mid-level dwelling fire policy that covers a broader range of named perils.
Explanation:
It typically includes risks like fire, wind, hail, vandalism, and accidental water damage. DP-2 offers more protection than DP-1 but is not as broad as DP-3.
Example:
If a rental property insured under DP-2 suffers hail damage, the policy pays for roof repairs.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.