Which item is an exclusion in DP-3?

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Multiple Choice

Which item is an exclusion in DP-3?

Explanation:
In DP-3, the item that is an exclusion is ordinance or law. This form covers the dwelling and other structures on an open‑peril basis, but it excludes costs related to enforcing current building codes and ordinances. In other words, unless you add a specific endorsement, the policy doesn’t automatically pay for the higher costs to rebuild or repair to meet code requirements. Fire, windstorm, and theft are generally covered perils under DP-3 (fire and windstorm as causes of loss to the dwelling or structures, theft often covered for personal property), so they aren’t exclusions.

In DP-3, the item that is an exclusion is ordinance or law. This form covers the dwelling and other structures on an open‑peril basis, but it excludes costs related to enforcing current building codes and ordinances. In other words, unless you add a specific endorsement, the policy doesn’t automatically pay for the higher costs to rebuild or repair to meet code requirements.

Fire, windstorm, and theft are generally covered perils under DP-3 (fire and windstorm as causes of loss to the dwelling or structures, theft often covered for personal property), so they aren’t exclusions.

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