Question 1 of 17
Explain the practical difference between DP-1, DP-2 and DP-3 when a client wants progressively broader protection on a dwelling.
Strong Interview Answer
DP-1 is the basic named-perils form; DP-2 adds broader named-perils protection; DP-3 generally provides open-perils coverage on the dwelling and other structures, subject to exclusions, while personal property remains treated under the form's listed-peril provisions. I would still review exclusions and endorsements because open perils never means every loss is covered.
What to Listen For
- DP-1 basic named perils
- DP-2 broader named perils
- DP-3 open perils on dwelling/other structures
- exclusions still apply
Caution
Do not describe DP-1 as open perils or imply that DP-3 automatically covers flood or every cause of loss.