Texas General Lines — Property and CasualtyPersonal LinesMedium
A client has a DP-2 Broad Form Dwelling Policy. Which of the following losses would NOT be covered under their policy?
- ADamage to the dwelling caused by earth movement, such as an earthquake.
- BDamage to the dwelling caused by the weight of ice and snow.
- CDamage to the dwelling caused by an accidental discharge from a plumbing system.
- DDamage to personal property from a volcanic eruption.
Show answer & explanationAnswer & explanation
Correct answer: A. Damage to the dwelling caused by earth movement, such as an earthquake.
DP-2 policies cover a broad range of perils but typically exclude earth movement, including earthquakes. Accidental discharge, volcanic eruption, and weight of ice/snow are usually covered perils.
Why the other options are wrong
- B. Weight of ice, snow, or sleet is a covered peril under DP-2.
- C. Accidental discharge is a covered peril under DP-2.
- D. Volcanic eruption is a covered peril under DP-2.
DP-2 Exclusions
While DP-2 (Broad Form) covers many perils, it still contains specific exclusions, notably for earth movement, flood, and war.
- DP-2 covers more perils than DP-1 but fewer than DP-3 (for the dwelling).
- Common exclusions include earth movement, flood, ordinance or law, war, nuclear hazard, and intentional loss.
- The 'Broad Form' refers to the list of named perils, not 'all risks'.
Memory trick: DP-2 covers many 'broad' perils, but 'Earth's wrath' (earthquakes, floods) is usually out.