Which coverage is included in a DP-3 policy but not in a DP-1 policy?

A DP-3 policy, or a Dwelling Form policy, is known as an "open peril" policy, providing broader coverage for risks that can damage the property. One of the significant distinctions between the DP-3 and the more limited DP-1 policy is the coverage for additional living expenses.

When a homeowner's property covered under a DP-3 policy becomes uninhabitable due to a covered loss, the policy typically provides for additional living expenses incurred during the repair or rebuilding process. This coverage helps policyholders pay for temporary housing or other associated living costs until they can return to their home.

In contrast, the DP-1 policy, which is known as a "basic" or "named peril" policy, does not include coverage for additional living expenses. Instead, it focuses primarily on structural damage and contents under restricted circumstances outlined specifically in the policy. Therefore, understanding this difference highlights the broader and more protective nature of coverage offered by a DP-3 policy.