What’s Not Covered Under a DP3 Policy?
A DP3 policy does not include the contents of the home, like furniture. Do you need coverage on the contents of your rental home? You will have to purchase additional coverage or an endorsement to your policy.
You may be required to buy a different policy if you have buildings that you rent to three or more families because they may be considered investment properties. In this case, a commercial policy would be the correct policy for you, instead of a DP3.
There are some instances where your insurance company will insure a three- or four-family building with a DP3. Check with your insurance company to confirm which policy is right for you.
Perils and Events Typically Excluded in a DP3 Policy:
Not every peril is covered by your DP3 policy. You should be aware of common exceptions. If your property is at reasonable risk of one of the following perils, you should add a rider or separate policy to your insurance plan.
Coverage may vary depending on the insurance company. Wondering which company will work best for you? Insurify lets you compare and receive free quotes from the best insurance companies at the lowest prices available. It’s the easiest way to get the best policy for your investment.
Optional Coverages on Dwelling Fire Insurance
The DP3 policy mainly covers your property’s structure (known as Coverage B ). You may have other structures, like a garage or a shed. You can purchase an add-on or endorsement for your DP3 policy to include these structures. An endorsement may also be added for personal property inside your rental.
Personal property includes appliances like ranges or dishwashers. You can find personal property details under Coverage C in your insurance policy.
Also, check with your insurance agent to confirm if your policy includes personal liability coverage. Personal liability helps you cover things like medical payments should some b injured on your property due to your negligence. Policies vary from insurer to insurer, and not all policies will offer this coverage. Many landlords purchase a separate comprehensive general liability policy to get fully covered.