Dwelling Form Codes

Dwelling form codes are industry designations for policies used to insure non-owner-occupied residential properties: rental homes, landlord properties, and vacant or seasonal dwellings. Unlike homeowners policies designed for owners who live in the property, dwelling forms are structured for owners who are not residents. The three main forms are DP-1, DP-2, and DP-3, each offering a different breadth of coverage.

DP-1 is a basic named-peril form that covers only explicitly listed causes of loss: primarily fire and lightning, and sometimes windstorm and hail with an endorsement. It is used for hard-to-place properties -- vacant homes, distressed or unoccupied structures -- where standard market carriers will not write. Coverage is narrow and payouts are on an actual cash value basis. DP-2 is a broader named-peril form that adds causes such as falling objects, weight of ice and snow, and sudden water damage from appliances. DP-3 is the standard landlord form and the most comprehensive option: open-peril coverage on the structure itself, with optional coverage for personal property owned by the landlord and loss of rental income when a covered loss makes the unit uninhabitable.

For most landlords with financed single-family rentals in good condition, a DP-3 with loss-of-rents coverage is the appropriate baseline -- and typically what the mortgage lender requires. The loss-of-rents provision is particularly valuable: if a kitchen fire forces your tenant out for four months during repairs, that coverage replaces the income you would otherwise lose entirely. Confirm your landlord policy is written on a DP-3 form and that the loss-of-rents limit reflects at least 12 months of your actual monthly rent, not a legacy figure set years ago when rent was lower.