Dwelling Restrictions and Added Options

Standard Dwelling Policy Exclusions

Standard dwelling forms (DP-1, DP-2, and DP-3) share a core set of general exclusions. These exclusions apply across the policy to avoid covering catastrophic losses or events within the insured's direct control. Standard dwelling policies exclude losses caused by earth movement, including earthquake, landslide, and mudflow. Water damage from flood, surface water, waves, and sewer or drain backup is also excluded under standard dwelling forms.

Other standard exclusions address external utility failures, intentional harm, and governmental action. Off-premises power failure is excluded, though an ensuing loss caused by a covered peril, such as a fire resulting from a power surge, may be covered. Policies exclude losses from war, including insurrection, and nuclear hazards. Standard dwelling forms exclude a loss caused by an act committed by or at the direction of an insured with the intent to cause a loss; they also exclude loss resulting from an insured's failure to use reasonable means to save and preserve property at and after a loss.

Destruction or seizure of property by governmental authority is excluded, with a limited exception for action taken to prevent the spread of a covered fire. In addition, standard dwelling forms generally exclude the costs of enforcing building ordinances or laws, except to the extent the form provides limited additional coverage or an endorsement adds coverage.

For example, if heavy rains cause a nearby creek to overflow and flood a client's basement, the standard dwelling policy will not pay for the water damage. Similarly, if an insured homeowner intentionally sets fire to their own detached garage, the intentional loss exclusion prevents recovery.