What is a DP-3 Dwelling Fire Policy?
What is a DP-3 Dwelling Fire Policy?
A DP-3 dwelling fire policy (ISO DP 00 03) is the most comprehensive of three dwelling fire policy forms. It covers a residential structure on an open-perils basis, meaning all causes of loss are covered except those specifically excluded. Unlike a homeowners policy, it is designed for properties the owner does not occupy.
How does a dwelling fire policy differ from homeowners insurance?
A homeowners policy (HO-3) is written for an owner who lives in the home. A dwelling fire policy is written for a property that is rented to others or left vacant. The owner does not need to reside there. That distinction matters because tenants and vacant properties carry different risk profiles than owner-occupied homes, and standard homeowners policies are not designed for those situations. For example, a landlord who buys a single-family home in Georgia to rent to a tenant cannot use an HO-3 to insure it; the property requires a dwelling fire form because the owner will not occupy it.
How do DP-1, DP-2, and DP-3 compare?
The three dwelling fire forms differ primarily in the breadth of perils they cover:
- DP-1 (Basic Form): covers a short named list of basic perils, including fire, lightning, and internal explosion. The most limited and least expensive option.
- DP-2 (Broad Form): expands the named-perils list to include windstorm, hail, vandalism, and additional causes. Still named-perils coverage for the dwelling.
- DP-3 (Special Form): shifts to open-perils for the dwelling structure. Any cause of loss is covered unless specifically excluded. The most comprehensive dwelling fire option available.
What does a DP-3 typically cover?
A standard DP-3 includes coverage for the dwelling structure (Coverage A), other structures on the property (Coverage B), loss of rents while the property is uninhabitable due to a covered loss (Coverage D), optional coverage for landlord-owned personal property such as appliances and window treatments, and optional landlord liability coverage. For example, if a fire makes the unit uninhabitable for eight weeks, Coverage D pays the landlord for the lost rental income during that repair period.
Why does a DP-3 not cover short-term rentals?
A DP-3 is built around the landlord-tenant relationship: long-term leases, consistent occupancy, and known tenants. Nightly STR use introduces guest turnover, higher liability exposure from strangers, and booking-calendar income calculations that a standard DP-3 is not designed to handle. Most carriers that write DP-3 policies exclude vacation-rental or short-term rental activity, or decline to insure it under that form entirely. A purpose-built short-term rental policy or a commercial hospitality product is typically required for active nightly hosting.
For a side-by-side comparison of the two product types, see Short-term rental vs. landlord insurance in Georgia.
A coverage review can explain how a DP-3 or an alternative product applies to your specific property. Request a coverage review.