Final answer:
The true statement regarding the DP-2 cause of loss form is that it includes EC perils, V&MM coverage, and the broad form perils. DP-3 provides broader coverage than DP-2, known as Special Form policy, covering all direct physical losses unless specifically excluded.
Step-by-step explanation:
The statement that is TRUE regarding the DP-2 cause of loss form is that it automatically includes the EC perils, V&MM coverage, and the broad form perils. The DP-2 form is part of a series of dwelling policies offering increasing levels of coverage. The EC perils refer to Extended Coverage, which adds additional perils to the basic policy, such as wind, hail, or explosion, among others. V&MM refers to Vandalism and Malicious Mischief coverage.
It's important to note that DP-3 provides an even broader level of coverage than DP-2. It's known as the Special Form policy and covers all direct physical losses to the property unless the cause of loss is specifically excluded. Unlike DP-1 and DP-2, DP-3 typically offers replacement cost valuation instead of actual cash value for the dwelling and other structures.