Which coverage receives loss settlement on a replacement cost basis on both the DP 3 and DP 3 policies?

The correct choice is Coverage A - Dwelling because both the DP-3 and DP-3 policies are designed to provide coverage for dwellings on a replacement cost basis. This means that in the event of a loss, the insured will receive compensation sufficient to replace the damaged or destroyed building without deducting for depreciation, thereby allowing for the full repair or replacement of the structure.

Coverage A specifically pertains to the physical structure of the home itself, which is in line with the intent of replacement cost coverage. This feature is essential for homeowners looking to ensure they can fully restore their property after a significant loss.

In contrast, while other coverages may also provide benefits following a loss, they do not typically operate on a replacement cost basis under the same terms. For instance, Coverage B generally relates to other structures on the property, Coverage C pertains to personal property, and Coverage D addresses loss of use scenarios, each with their own specific terms and conditions regarding loss settlements that differ from those of Coverage A.