Dwelling Fire Insurance

Dwelling Fire Policy

For some clients, a dwelling fire policy is the better alternative to a homeowner’s policy.  Dwelling fire insurance covers much more than just fire.  But this kind of policy isn’t for everyone, so here are the dwelling fire basics.

A dwelling fire policy may be beneficial for:

  • Vacation homes
  • Vacant homes
  • Seasonal homes
  • Secondary homes
  • Rental properties of all kinds (long-term, weekly, monthly, or seasonally)
  • Older homes

Dwelling Fire Insurance Basics

The coverage is very similar to a homeowner’s policy, with one significant difference – a dwelling fire policy is created for someone that does not make the property their primary residence. If you need to insure a rental or investment property, a dwelling fire policy is a smart decision.

DP-3: Special Form

The DP-3 form is the most comprehensive dwelling fire coverage available. It is an “open perils” policy, which means real property (dwelling and other structures) will be covered for all types of damage, except those exclusions named in the policy.

DP-3 form exclusions vary, but will typically be some or all of the following:

  • War
  • Water damage
  • Laws and ordinances
  • Neglect
  • Intentional loss
  • Mold, rust, rot and other gradual losses
  • Certain types of water damage
  • Earth movement, such as earthquakes