According to insurance terms, the DP-2 and DP-3 forms provide replacement cost coverage when the insurance amount equals what percentage of the Actual Cash Value (ACV)?

The DP-2 and DP-3 forms are types of dwelling property insurance policies that provide coverage for property on a replacement cost basis under specific conditions. For a policyholder to receive replacement cost coverage, the insurance amount must be at least 80% of the Actual Cash Value (ACV) of the property at the time of loss.

This requirement ensures that the policyholder has enough coverage to fully replace the damaged or destroyed property without facing a penalty at the time of claim. If the coverage amount falls below this threshold, the insurance company may reduce the payout to reflect the lower coverage limit, rather than the full replacement cost. Thus, maintaining insurance at or above 80% of ACV helps protect the policyholder and ensures comprehensive coverage in the event of a loss.