Dwelling/Fire Insurance is important no matter where you live.
Homeowners Insurance HO3 – HO8 – Renters Insurance HO4 – Condo Unit Owner/Renters HO6 – Dwelling Fire Insurance – DP1 and DP3 are the most common types of coverage for Home Insurance.
JM’s Best Insurance we will help you find the best coverage for all your house insurance needs.
Dwelling Fire Insurance – DP1 Basic and DP3 Broad Forms
When it comes to Florida dwelling fire insurance commonly known as rental property landlord policies, the DP-1 is the most basic of them all. Many landlords choose the DP-1 option as an economic way to insured their properties while still protecting it from named perils such as fire and lightning, hail, explosions, and ground collapse. Customers have the option of adding endorsements to the dwelling fire policy, extending the coverage to such issues as vandalism and malicious mischief.
DP-1 form policies do not cover damage due to water or faulty pipes and the benefits are paid in actual cash value, meaning the insurance company considers depreciation before arriving at the sum. On the flip side, there is the dwelling fire insurance DP-3, which is a broad form policy and is far less restrictive on which issues are covered. This is often the form recommended for property investors and rental property owners, as it covers everything not specifically excluded in the wording of the contract. They are not, however, available for vacant housing, which is one scenario where a vacant property policy may be preferred.
“Commonly cited as a weakness in the HO3: its lack of flood water damage coverage. While the policy does include a guard against “sudden and accidental” water damage cause by water pipe leak or burst, it does not cover water damage resulting from rising waters, flood, sewers or drains backup.”