How does the Special Form Dwelling Policy (DP-3) treat contents coverage?

The Special Form Dwelling Policy, also known as DP-3, provides contents coverage on a named peril basis. This means that only the specific risks or perils that are explicitly listed in the policy are covered for personal property.

In the context of the DP-3, while the dwelling itself is insured on an open peril basis, which provides broader coverage for the building structure against all perils except those specifically excluded, the contents within that dwelling are subject to a more restrictive coverage approach. This distinction is important for policyholders to understand, as it affects the types of losses they may be able to claim for their personal belongings.

By focusing on a named peril coverage for contents, the policy limits protection to certain risks, such as fire, theft, and vandalism, rather than covering all potential risks as it does for the dwelling structure. This specific treatment ensures that policyholders are aware of the limitations on what is covered under the contents portion of the policy.