Question

Which of the following perils is covered for earth movement under the DP-2 Dwelling form?

a. There are no perils covered for earth movement under the Dwelling forms.
b. Ban the person from the insurance business for life.
c. DP-3 policy with a personal property limit of $50,000

Answer 1

The standard DP-2 Dwelling Form typically does not cover earth movement. Additional coverage or endorsement is required for perils like earthquakes and landslides.

Step-by-step explanation:

When looking at the DP-2 Dwelling Form, earth movement is generally not a covered peril. The standard DP-2 policy, often referred to as the Broad Form, covers a dwelling against risks like fire, lightning, windstorm, hail, explosion, smoke, vandalism, and several others, but earth movement is typically excluded. This exclusion usually encompasses earthquakes, landslides, mudflows, sinkholes, and other forms of earth movement.

To have coverage for such perils, a policyholder would need to purchase additional coverage or endorsement specifically designed for earth movement. It is important for homeowners to review their policy or speak to their insurance representative to fully understand what their policy covers.