A DP-2 form policy, also known as a Dwelling Property Broad Form policy, provides a named-perils coverage specifically tailored for rental properties. This type of insurance is primarily used by landlords to cover risks associated with rental units, providing protection against various perils that could lead to property damage.
The DP-2 form includes coverage for specific named perils such as fire, lightning, windstorm, hail, explosion, vandalism, and more. This targeted approach allows landlords to safeguard their investments while also offering necessary protections for the structures they rent out to tenants. Since the policy is designed for coverage of physical property and does not provide a broad array of options like comprehensive or all-risk policies, it specifically suits the needs of those renting out properties.
The other options do not align with the features of a DP-2 policy. While General liability coverage is essential for property owners, the DP-2 policy specifically includes property coverage and is not limited to liability insurance. It also does not exclusively focus on providing comprehensive coverage for all types of properties since it is specifically designed for rental dwellings. Additionally, it does not exclude wind damage; rather, it includes coverage for windstorms as one of the named perils, as long as it is