DP3 vs HO3: What’s the difference? | Kin Insurance (2024)

FAQs

DP3 vs HO3: What’s the difference? | Kin Insurance? ›

DP3 policies are most commonly for properties the owner rents to others. An HO3 policy is for owner-occupied homes. Notice, too, that some coverages are added by default, while others are optional. The second biggest difference is DP3's inclusion of the roof surfacing payment schedule (RSPS) endorsem*nt.

A DP3 policy is an open peril policy, meaning your insurance carrier will cover all perils unless expressly excluded in your policy. While more expensive, a DP3 offers coverage for just about anything, making it one of the most comprehensive policies available!

WHAT ARE THE EXCLUSIONS AND LIMITATIONS OF A DP3 POLICY? Although an open peril policy, a DP3 does exclude risks like earthquakes and floods. However, you can choose to cover these types of perils with an endorsem*nt. You also typically won't find a renter's personal belongings covered under the policy.

Higher liability limits are usually available on a commercial lines form than a personal lines form (DP-1 or DP-3). Higher Property limits are also usually available on a commercial form over a personal lines form. Most carriers limit their exposures on dwelling fire forms (both from a minimum and maximum basis).

While the HO3 automatically includes personal property coverage, the DP3 typically does not. Landlords can choose to add personal property coverage for items they own in the rental property, such as appliances or furnishings, but this is optional. Another key difference is liability coverage.

Unlike the named peril DP1 which only covers listed events, a DP3 policy covers all risks except those specifically excluded in the policy documents. This open peril approach means your rental property is protected against a wide range of perils like water damage, theft, falling objects, ice and snow, and more.

Travelers is the most expensive homeowners insurance company for $200,000, $350,000, $500,000 and $750,000 dwelling coverage amounts. Rates vary significantly among companies because they each have their own formulas for pricing.

A DP-3 policy usually covers a wide range of perils, however, damage by vandalism to a vacant property or theft in a dwelling under construction would likely not be covered. Damage to a fence due to weather conditions and wind damage to TV antennas are typically covered.

For starters, the DP3 is described as having more robust coverage than a DP1 because the DP3 is an open perils policy. That means it protects your home against all sources of loss except those the policy names as exclusions. A DP1 only protects against nine specified perils.

Most condominiums, co-ops, and townhomes are written on an HO6 form aka “condo insurance” but some need to be written on an HO3 aka “homeowners insurance”, DP3 aka “dwelling fire policy”, or an HO4 aka “renters insurance”.

What is DP 3 also known as? ›

Also referred to as Dwelling Fire Form 3, this insurance is suitable for residential homes that are not occupied by the owner. This type of dwelling fire insurance operates as an open peril policy, meaning all perils are covered unless they are specifically detailed as exclusions within your policy agreement.

HO3 policies typically pay for: Damage to the home (Coverage A). Damage to other structures on your property, like fences or detached garages (Coverage B). Damage to or theft of personal belongings, like clothes, furniture, etc (Coverage C).

The DP3 policy provides the better coverage and is the policy type that we recommend. The DP1 policy is known as the Dwelling Fire Form 1 policy. This policy is essentially a building only policy that only offers coverage to named perils.

Some of the most commonly excluded perils are: Ordinance or law. Earth movement. Water damage.

An HO3 policy is the most commonly used homeowners insurance policy, protecting you, your family, and your property (including your personal belongings) against various types of damage.

How is an HO3 policy different from other types of homeowners insurance? The main reason why HO3 policies are so popular is because they offer an excellent balance of reliable, affordable coverage against a broad range of risks.

A DP1 only protects your dwelling for its actual cash value. With a DP3, the structure of your home is usually covered for its replacement value, or what it would cost to rebuild your home from the ground up with similar materials after a total loss.

DP1 is cheaper as it covers fewer perils, while DP3 is the most expensive. DP2 insurance is in the middle, a more affordable option than DP3 that covers more risks than DP1. A DP3 policy generally covers everything a DP2 policy does, plus extra coverage.

Cheaper health insurance rates: HMO plans are usually a lower-cost alternative to PPOs. The average HMO rate is $427 monthly for an Affordable Care Act (ACA) plan for someone who is 30 years old. That's compared to $512 monthly for a PPO plan for the same person.