Are building materials stored in a neighbor’s garage covered under a DP-3 policy?

Under a DP-3 policy, which is a type of dwelling policy providing "open peril" coverage for the structure and "named peril" coverage for personal property, the focus revolves around the location and ownership of the covered items. The coverage typically extends to personal property that is owned or used by the insured and located on the insured premises.

In the context of the question, building materials stored in a neighbor’s garage would generally be covered under a DP-3 policy if they are adjacent to the insured’s premises. This condition aligns with the nature of how dwelling coverage is interpreted, allowing for coverage of property that is closely related or connected to the insured property. The proximity indicates a reasonable expectation for coverage because these materials may be intended for use in connection with the insured property.

In contrast, the other options suggest limitations or specific conditions that do not align with the general principles of the DP-3 policy coverage. Understanding the geographic and relational factors regarding coverage helps clarify when items are included under such policies.