South Carolina Personal Lines Practice Exam

Which dwelling form is referred to as the Broad form?

1. DP-1

2. DP-2

3. DP-3

4. DP-4

The correct answer is: DP-2

The Broad form is identified as the DP-2 policy in the dwelling insurance classification system. This form provides a more extensive range of coverage compared to the Basic form, which is known as DP-1. The DP-2 policy includes broader coverage for both the dwelling and personal property. It encapsulates the perils covered under the DP-1 and adds additional perils, such as accidental discharge of water, breakage of glass, and falling objects. This makes it a desirable choice for homeowners seeking more comprehensive protection against various risks. The DP-3 policy, while also providing a broad level of protection, is specifically known as the Special form and offers open perils coverage for the dwelling and named perils for personal property. This provides even more coverage but does not fall under the Broad form classification. The DP-4 form is not commonly referenced in relation to the Broad form classification, as it typically pertains to mobile homes or manufactured housing, rather than standard dwelling structures. Thus, the DP-2 is correctly referred to as the Broad form.