Dwelling Insurance
Dwelling or DP3, DP2 or DP1 Written for the rented home or townhome, this is similar to a homeowners policy and is designed to cover all aspects of the home in addition to risks associated with tenants. The structure is covered and usually the Tenant acquires a HO4 or renters policy to cover their personal property. Premium costs are determined by such factors as the age of the home, fire and burglary protection, size (for replacement cost), improvements and/or updates to the home. View the pictures to the left comparing features of the DP policy forms.
DP3
The DP3 refers to an insurance policy covering a residential building, usually rented to others. The HO3 is reserved for homeowners, but not exclusively single-family homes.
If you own a multi-family (2-4 family) property and live in one of the units you can usually use the tried, true and tested HO3 policy to cover the entire dwelling, your contents (your stuff), and your own personal liability exposure. Because you live there, the cost of insurance is lower than if you didn't.
If the owner does not live at the property, a homeowner’s policy won't work. Instead you would use a Dwelling Fire Policy to properly protect your interests. The most popular Dwelling Fire policy is known as the DP3.
The DP3 is popular because it is an Open Peril policy that covers losses to the building’s structure, "loss of use’ or rental coverage, and customarily personal liability as well. Contents (also known as personal property, such as furniture or appliances) are NOT automatically included the same way as in the homeowners’ policy, but can be added. Many rentals don't include furniture, so there's no charge unless you add this.
If the owner insures a rental property with an HO3 but lives elsewhere, it's a bad fit; you risk NOT being covered for losses. Most 2- and 3-family properties rented to others that are not owner-occupied are insured under the DP3.
Buildings with 3 or more families that are investment properties rented to others are most often insured on a commercial policy rather than either the DP3 or HO3 (though some insurance companies will insure up to a 4-family building using a DP3). This commercial policy will include coverage for loss of rents and responds to any suits you may be brought into in the event of a claim.
DP2
All standard/optional perils listed in basic form DP1), in addition to Damaged covered property caused by burglars (doesn't apply to theft of property). It does not cover damage to awnings, fences, patios, pavement, swimming pools, foundations, retaining walls, bulkheads, piers, wharves, or docks. Falling objects- Doesn't cover dmg to awnings, fences, outdoor equipment, outdoor radio/TV antennas, lead-in wires, masts, towers
Damage to building's interior or its content covered if the falling object first damages the roof or an exterior wall. Freezing of plumbing, heating, AC or automatic fire protective sprinkler systems and household appliances (insured must use reasonable care to maintain heat in building or shut off water supply). Sudden/accidental tearing apart/cracking/burning of plumbing, heating, AC or automatic fire protective sprinkler systems and water heaters. Sudden/accidental damage from artificially generated electrical current (doesn't include damage to a tube, transistor or similar electrical component).Accidental discharge of water or steam @ described location from w/in a plumbing, heating, AC, or automatic fire protective sprinkler system or household appliance Doesn't include continuous or repeated leakage or seepage, freezing, damage to the system or appliance itself. The burglars & accidental discharge perils aren't covered if building has been vacant for 60+ consecutive days (rental properties) Vehicles peril covers damage to fences, driveways, walks when vehicle driven by someone who isn't a resident of insuredss household.Smoke peril includes loss caused by fireplace smoke.
DP1
THE most BASIC policy is a dwelling property 1 (DP-1). Like dwelling property 3 (DP-3) policy, it’s ideal for Florida homeowners who are renting out their home and are on a very tight budget. Since a DP-1 policy provides the least amount of coverage, it’s also the cheapest.
The DP-1 insurance policy is a “named perils” policy. This means that all the perils that are insured are listed, or named, in the policy itself. This differs from our DP-3 and standard homeowners policy forms, which insure against all perils with the exception of a few exclusions listed in the policy, like flooding. A DP-1 policy is an “actual cash value” policy, which means depreciation will be deducted from any damages you are awarded after a claim.
We do offer the option to add on coverage, like personal liability and medical payments, to this very basic policy. Be sure to let your agent know if you have a fire alarm or a sprinkler system as you may qualify for a discount helping you to decrease the cost of your premium further.
Our Florida vacant home insurance, which is specifically designed for unoccupied homes in Florida, is also written on our dwelling property 1 (DP-1) policy form.
