Final answer:
The DP-3 policy is a comprehensive dwelling insurance that provides 'open perils' coverage for a variety of risks to the dwelling, other structures, and personal property, as well as loss of use.
Step-by-step explanation:
The DP-3 policy is a type of dwelling insurance that is part of the "dwelling policy" series, which includes DP-1, DP-2, and DP-3. The DP-3 is considered the most comprehensive and provides what is known as 'open perils' or 'all risks' coverage unless specifically excluded, for the dwelling itself. It typically covers a wide array of potential risks, including fire, lightning, windstorm, hail, explosion, smoke, vandalism, theft, damage from vehicles and aircraft, riots, and volcanic eruption.
In addition to the structure of the home, DP-3 policies often include coverage for other structures on the property, such as garages or sheds, as well as personal property within the home. Loss of use or additional living expenses are also usually included, which covers the costs of living away from home if it is made uninhabitable due to a covered disaster. However, it's important to read the specifics of your policy as coverage can vary.