{"id":359,"date":"2019-10-24T19:37:39","date_gmt":"2019-10-24T19:37:39","guid":{"rendered":"http:\/\/www.insurance-education-group.com\/insuranceeducationgroup\/?page_id=359"},"modified":"2020-02-21T15:09:59","modified_gmt":"2020-02-21T15:09:59","slug":"dp3-rental-home-insurance-policy","status":"publish","type":"page","link":"https:\/\/www.insurance-education-group.com\/dp3-rental-home-insurance-policy\/","title":{"rendered":"DP3 Rental Home Insurance"},"content":{"rendered":"
[vc_row][vc_column][vc_custom_heading text=”DP3 Rental Home Insurance Policy” use_theme_fonts=”yes”][vc_column_text]The DP3 rental home insurance policy is considered the best insurance policy for rental properties in the United States. It is often referred to as the Dwelling Fire Form 3 or DP-3 insurance. It provides excellent coverage for Landlords who are looking to get excellent insurance for their rental properties.[\/vc_column_text][vc_custom_heading text=”DP-3 Insurance is for Rental Properties” font_container=”tag:h3|text_align:left|color:%231a4b9a” use_theme_fonts=”yes”][vc_column_text]The DP 3 insurance is best suited for rental properties or non-owner occupied homes.<\/p>\n

In the past, the DP-3 was used to insure owner-occupied homes. In more recent years, however, it’s primarily used to insure rental properties. Policies like the HO3<\/a> and the HO5<\/a> are now the primary policies for insuring owner-occupied homes.<\/p>\n

Although homeowners are not restricted from insuring owner-occupied homes with a DP-3 insurance policy, it is discouraged. Plus, most homeowners get more coverage at less cost by insurance through traditional HO policies.[\/vc_column_text][vc_custom_heading text=”DP3 Insurance is All Risk Insurance” font_container=”tag:h3|text_align:left|color:%231a4b9a” use_theme_fonts=”yes”][vc_column_text]Dwelling fire insurance policies come in two different policy categories; named peril policies and open peril policies. The DP 1<\/a> and DP 2<\/a> are named peril policies, while the DP 3 is an open peril policy.<\/p>\n

Named peril insurance policies are policies that specifically list the perils<\/a> that are insured under the policy.<\/p>\n

Open peril policies, on the other hand, are insurance policies that cover all possible perils, with the exception of a small list of perils excluded from the policy.[\/vc_column_text][vc_custom_heading text=”DP3 Rental Home Insurance Peril Exclusion List” font_container=”tag:h3|text_align:left|color:%23274e95″ use_theme_fonts=”yes”][vc_column_text]The DP-3 rental property policy insures all perils except for those specifically excluded from the policy. The following perils are excluded from standard DP-3 insurance coverage:[\/vc_column_text][vc_row_inner][vc_column_inner width=”1\/3″]

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Earth Movement<\/h5>\n<\/p><\/div><\/div><\/div>
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Power Failure<\/h5>\n<\/p><\/div><\/div><\/div>
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Nuclear Hazard<\/h5>\n<\/p><\/div><\/div><\/div>
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Mold<\/h5>\n<\/p><\/div><\/div><\/div>[\/vc_column_inner][vc_column_inner width=”1\/3″]
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Ordinance \/ Law<\/h5>\n<\/p><\/div><\/div><\/div>
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Neglect<\/h5>\n<\/p><\/div><\/div><\/div>
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Intentional Loss<\/h5>\n<\/p><\/div><\/div><\/div>[\/vc_column_inner][vc_column_inner width=”1\/3″]
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Water Damage<\/h5>\n<\/p><\/div><\/div><\/div>
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War<\/h5>\n<\/p><\/div><\/div><\/div>
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Govt. Action<\/h5>\n<\/p><\/div><\/div><\/div>[\/vc_column_inner][\/vc_row_inner][vc_column_text]Although the list above is the default exclusion list for the DP3, there are some minor clarifications that need to be made.<\/p>\n

First<\/span>, most<\/em> water damage is excluded, but some companies may <\/em>include a little for no additional premium. Sudden & Accidental Water Damage is covered by some DP-3 rental property insurance policies. Many of the other types of water damage, like Water Backup, may be endorsed onto the policy for an additional premium depending on the company offering the insurance.<\/p>\n

Second<\/span>, some<\/em> coverage for Mold may <\/em>be provided depending on the insurance company offering the DP-3 insurance policy.[\/vc_column_text][vc_custom_heading text=”DP3 Rental Insurance is for Replacement Cost” font_container=”tag:h3|text_align:left|color:%23274e95″ use_theme_fonts=”yes”][vc_column_text]\n

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Insurance policies are either replacement cost<\/a> or actual cash value. Actual cash value (ACV) policies typically don’t insure dwellings in full because depreciation is deducted from the amount of money you can receive for a claim. If you home is old, then depreciation on the materials can prevent you from receiving thousands of dollars on your claim.<\/p>\n

Fortunately, DP 3 insurance is for replacement cost. This means regardless how old your home is, your dwelling will be repaired in full without any costs out of pocket besides your home insurance deductible, as long as the damage is caused by a covered peril and you have sufficient dwelling coverage to cover the whole claim. Replacement cost is much better than ACV, and the DP3 has this type of protection.<\/p>\n<\/div>\n<\/div>\n[\/vc_column_text][vc_custom_heading text=”Loss of Rents Included in the DP3 Policy” font_container=”tag:h3|text_align:left|color:%23274e95″ use_theme_fonts=”yes”][vc_column_text]The standard DP3 policy in the United States comes with a similar package offered by home owner (HO) insurance policies. A typical home insurance company in the United States will include the following five sections of coverage:<\/p>\n