1. A dwelling policy is most commonly used to insure:

A rental dwelling or a home that does not qualify for a homeowners policy

Dwelling policies cover the structure and limited personal property for risks such as rental homes or dwellings not eligible for a homeowners policy, and generally do not include the broad liability and theft coverage of a homeowners form.

2. The DP-1 (basic) dwelling form provides coverage on:

A limited named-perils basis

The DP-1 basic form covers a limited set of named perils such as fire and lightning, with other perils available by endorsement.

3. Compared with the DP-1, the DP-3 (special) dwelling form generally provides:

Broader, open-perils coverage on the dwelling

The DP-3 special form generally insures the dwelling and other structures on an open-perils basis, providing broader coverage than the named-perils DP-1.

4. A key difference between a basic dwelling policy and a homeowners policy is that the dwelling form usually:

Does not automatically include theft or broad liability coverage

Dwelling forms focus on the structure and limited perils and typically do not automatically include the theft and broad personal liability coverage found in homeowners policies, though some can be added.