Massachusetts Personal Lines Practice Exam 2025 - Free Personal Lines Insurance Practice Questions and Study Guide

Question: 1 / 400

What type of coverage does the DP-3 policy provide?

Named perils coverage

Open peril coverage

The DP-3 policy, also known as the Dwelling Property 3 policy, provides open peril coverage for the dwelling and other structures. This means that it covers losses to the property caused by any perils except for those specifically excluded in the policy. Open peril coverage is broader than named perils coverage, as it does not require that the peril be named or listed in order to be covered.

In the context of property insurance, named perils coverage only protects against specifically listed risks, which is characteristic of certain other policy types, not the DP-3. Basic coverage encompasses limited and specific perils, while broad coverage extends the list of covered perils but does not reach the extent of an open peril approach. Therefore, the DP-3's open peril designation allows for a wider range of protection that is beneficial for homeowners looking for comprehensive safeguarding of their property.

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Basic coverage

Broad coverage

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