Which of the following types of losses would typically be excluded under a DP-3 policy?

A DP-3 policy, also known as a Dwelling Policy – Special Form, provides coverage for various types of losses to a dwelling and its contents. However, it is important to understand that certain types of damages are explicitly excluded from coverage under this policy. Flood damage is one of those exclusions.

Flooding is typically categorized as a result of water intrusion that could be due to heavy rainfall, storm surges, or rising bodies of water. This kind of damage is not covered under standard dwelling policies, including the DP-3, because it is considered a separate risk that requires specialized flood insurance. The necessity for a separate flood insurance policy is recognized in the insurance industry because of the unique and unpredictable nature of flooding events.

In contrast, storm-related theft may be covered appropriately under a DP-3 policy if there is a theft of personal property during a covered peril, and fire damage is explicitly covered under the policy. Earthquake damage, while also typically excluded, is not the best answer in this case because flood damage is a more commonly recognized and definitive exclusion in the context of the DP-3 form. Thus, flood damage is the correct choice for a loss typically excluded under this policy.