Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Property InsuranceMedium
A client owns a vacation home that they rent out to tourists for short periods throughout the year. They are looking for a Dwelling Policy that provides broad coverage for the dwelling and personal property, including coverage for theft. Which Dwelling Policy form would be most appropriate for this client?
- ADP-2 Broad Form
- BHO-3 Homeowners Policy
- CDP-1 Basic Form
- DDP-3 Special Form
Show answer & explanationAnswer & explanation
Correct answer: A. DP-2 Broad Form
The DP-2 Broad Form provides named perils coverage for both the dwelling and personal property, which includes perils like theft, falling objects, and weight of ice/snow/sleet, offering broader protection than the DP-1. A DP-3 offers open perils for the dwelling but named perils for personal property, and an HO-3 is typically for owner-occupied dwellings.
Why the other options are wrong
- B. An HO-3 policy is designed for owner-occupied residences, not typically for properties rented out to tourists.
- C. DP-1 only provides basic named perils (fire, lightning, internal explosion) and usually excludes theft.
- D. DP-3 Special Form provides open perils for the dwelling but still named perils for personal property, and the question specifically asks for broad coverage for *both* with theft.
DP-2 Broad Form
A Dwelling Policy that provides named perils coverage for both the dwelling and personal property, including perils beyond the basic form like theft, falling objects, and weight of ice/snow/sleet.
- Named perils coverage for both dwelling and personal property.
- Perils include fire, lightning, internal explosion, extended coverage perils, V&MM, burglary damage, falling objects, weight of ice/snow/sleet, accidental discharge of water, freezing.
- Broader than DP-1 but not 'all risk' like DP-3 for the dwelling.
Memory trick: 1 is basic, 2 is broad, 3 is special for the dwelling god.