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

A DP-3 policy, which is a type of dwelling policy providing coverage for the structure on an open-perils basis, excludes certain types of losses from coverage. Flood damage is a commonly excluded peril in most standard property insurance contracts, including DP-3 policies. This exclusion is significant because it emphasizes the need for separate flood insurance, particularly in flood-prone areas.

Other types of losses, such as storm-related theft, are covered under the DP-3 policy, as theft is generally not excluded unless specified. Fire damage is a primary peril that is covered; in fact, it is typically one of the key reasons individuals obtain insurance on their dwelling. Earthquake damage, while not covered under a standard DP-3 policy, may not be as typical of an exclusion as flood damage, which is universally understood to require separate coverage through a flood insurance policy.

Understanding these distinctions is crucial for homeowners to ensure they have appropriate coverage for the risks they may face, particularly in flood-prone zones.