What type of insurance policy does Christy have for her property?

The choice of a DP-2 policy indicates that Christy has a dwelling policy that provides broader coverage than a DP-1 policy. The DP-2, also known as the Broad Form Dwelling Policy, offers named perils coverage for the dwelling and certain personal property. This means that it will cover specific risks such as fire, lightning, windstorm, and others listed in the policy.

Additionally, the DP-2 policy encompasses coverage for both the dwelling and other structures on the property, and it typically includes coverage for personal property located on or near the insured premises, though at a reduced level when compared to more comprehensive policies. This policy is particularly suited for properties that are rented out or not owner-occupied, making it a popular choice for landlords.

The DP-1 is more basic with actual cash value payouts, and the DP-3 policy provides even more extensive open peril coverage for the dwelling. The HO-3, on the other hand, is designed for owner-occupied homes and includes broader coverage for personal property. In contrast, the DP-2 is specifically tailored to meet the needs of property owners, especially those who may want a balance of coverage and cost. Hence, selecting the DP-2 reflects a choice for enhanced