Final answer:
The DP-3 special form provides comprehensive property damage coverage for residential buildings, protecting against all risks not expressly excluded in the policy, which includes common perils like fire, storms, and theft.
Step-by-step explanation:
Under the DP-3 special form, also known as special form dwelling insurance, various types of property damages are covered. This insurance coverage is typically offered for residential buildings and is the most comprehensive of the Dwelling Property forms, providing protection against all risks of direct physical loss that are not specifically excluded in the policy. The coverage includes dwelling structures, attached structures, and typically personal property within the dwelling.
The DP-3 special form specifically covers damage from scenarios such as fire, windstorms, lightning, hail, explosions, smoke, vandalism, theft, and more. However, it is crucial to read the policy carefully to understand the exclusions, which may include events like earthquakes, floods, or intentional damage by the homeowner.