Call Us Speak with an Agent (800)252-6885
Homeowners Insurance HOME

We provide Policies to protect your home and personal belongings.

Read More
Flood Insurance FLOOD

Have Peace of mind that you are covered if a flood strikes.

Read More
Auto Insurance AUTO

Coverage for you and your loved ones in the event of an accident.

Read More
Business Insurance BUSINESS

Discover the perfect insurance options to meet your needs.

Read More
Boat Insurance BOAT

Protect your personal watercraft with an affordable rate.

Read More
Renters Insurance RENTERS

Get an Insurance policy to protect all of your personal Items.

Read More

Rental Property Insurance - Dwelling Fire DP 1 vs DP 3

Dwelling Fire – Form 3 (DP-3)

A Dwelling Fire Form 3 (DP-3) is the best  insurance coverage that you can purchase for residential rental properties. Unlike DP-1 and DP-2 policies, which are ‘named perils only’, the DP-3 dwelling policy form provides what is known as ‘all risk’ or ‘open perils’ coverage, which means that just about everything is covered unless it is specifically excluded in the language of the policy itself.  DP-3 policies are more expensive than their DP-1 and DP-2 cousins, but the extra  money is well-worth the additional coverage afforded to you as a property owner.

DP-3 policies contain all of the same coverages as the DP-1 and DP-2, but as mentioned above, they also cover most other causes of loss unless the policy specifically says it doesn’t.

Also, claims and losses are automatically settled on a ‘replacement cost’ basis and coverage against vandalism and malicious mischief (VM&M) and and water damage (‘accidental discharge’) are also included. DP-1 policies are written on a  Actual cash Value basis. This means if your Kitchen cabinets are damaged your claim payment would be the cost new minus depreciation. This can subtract a substantial amount of money from your claim payment. Many DP-1 policies excluded coverage for water damage coverage and  vandalism or malicious mischief . DP-1 policies also do not offer coverage from falling objects. If there are trees located around the property I highly recommend purchasing the DP-3 policy form.  

Also see Blog: Who is responsible for the neighbors fallen tree.

Let us rate your Property with over 10 of Florida's Top Insurance Carriers

Some important things to know about basic DP-3 policies:

Not all insurance companies offer DP-3 policies and coverages.
DP-3 policies can be issued for either non-owner occupied or owner-occupied dwellings and they ARE NOT available for vacant homes or properties.
Vandalism and Malicious Mischief as well as coverage for Water Damage is included.

Investors and property owners also need to consider additional coverage listed below.  It is important to know that not all companies offer these endorsements with their policies and it is up to you and your agent to decide whether or not these are necessary for your situation.

Loss of Rent– when a property is damaged due to a covered loss and the property is uninhabitable while being repaired; this coverage will pay the property owner up to six month’s worth of rental income to cover the loss of this money while the property is being repaired. Most banks and lenders actually require this coverage when lending on non-owner occupied properties.

Vacancy Clause – If the property is unoccupied for 61 continuous days or more, DP-1 policies will, depending upon the company, either automatically cease coverage altogether or they will reduce coverage to only insuring the perils of fire and lightening.  Purchasing a ‘vacancy clause endorsement’ (which can be quite expensive) ensures that in the event of continuous vacancy, the policy will not cease or reduce coverage.

If you would like more information on Insurance options for Rental Properties or would like to get a Quote on your Rental property give us a call at 1-800-252-6885 or visit our Home Insurance Quote Page for a Free online Quote. 

Greene & Associates Insurance provides  Insurance Quotes, Rates and Policies online for Home, Auto and Business Insurance for the entire State of Florida including Lake City Fl, Jacksonville Fl, Gainesville Fl, Alachua Fl, Live Oak Fl, Ft White Fl, Branford Fl, Ocala Fl, Middleburg F, Greene Cove Springs Fl & St Augustine Fl
Share |


Louise adamson said...
What is cover under a Dp1 policy?
MONDAY, DECEMBER 05 2016 9:00 AM
Tiffany Thu Le said...
I have a townhouse for rent. What kind of insurance I need to purchase? DP3 or DP???
Joe said...
You would want to insure your townhouse with a DP3 policy to obtain the best coverage.
TUESDAY, JANUARY 08 2019 7:12 PM

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012

View Mobile Version
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier