Final answer:
The DP-3 form (option 3) under dwelling policy is the "all-risk" coverage option, providing broad protection for losses unless specifically excluded. DP-1 and DP-2 provide more limited, named-peril coverage. There is no standard DP-4 form in dwelling policies.
Step-by-step explanation:
The student has asked which form is considered "all-risk" under the dwelling policy. In the context of dwelling policies, "all-risk" coverage refers to a form that provides a broad range of coverage for losses, which are not specifically excluded in the policy. Among the options provided, Option 3: DP-3 is known as the "Special Form" and is typical of "all-risk" coverage.
This form covers all direct physical losses to the dwelling and personal property, except those losses specifically excluded in the policy document. Option 1: DP-1 is a "Basic Form" that provides limited coverage and lists specific perils, while Option 2: DP-2, known as the "Broad Form," covers more perils than DP-1 but still only specifies certain named perils. There is no Option 4: DP-4 in the standard dwelling insurance policies.