(800) 253-1482Missouri DP1 Policy for Landlords
Summary: For landlords in Missouri, a DP1 policy offers basic protection for a lower cost, but keep in mind that you carry more risks. You also receive less reimbursement as DP1 policies use actual cash value (ACV), which factors in depreciation after a claim. Be sure to compare your protection with other forms of landlord insurance, such as a DP3 policy, to find the best option for your rental. Estimated Read Time: 3 mins
Missouri landlords looking to save on coverage or protect a vacant property can benefit from a DP1 policy. This is a basic coverage with lower premiums but there is more risk as many perils aren’t covered.
Take a closer look at how DP1 policies protect your rentals, and how they compare to other forms of coverage, and get an affordable quote from top-rated insurance companies.
Missouri DP1 Policy Definition
DP1 policies, or Dwelling Fire Form 1, is a Missouri landlord insurance coverage that will protect your rental home with the most basic protections available.
There are nine specific perils you’re covered from and it’s typically a policy used on properties where landlords are cutting costs or vacated homes.
How a DP1 Insurance Policy Covers Landlords in Missouri
Landlords are protected from nine specific perils when using a DP1 policy. Operating on a named peril basis, your rental home is protected from:
- Aircraft
- Explosions
- Fire and lightning
- Hail
- Riots
- Smoke
- Vehicles
- Volcanic explosions
- Windstorms
Remember, these perils are important but they are far from all of the risks homes in Missouri will face.
Additional protection is available and it’s important to compare multiple landlord insurance policies to find the right fit for your investment.
What’s Not Covered
DP1 coverage has a named peril basis, meaning you won’t have protection if you suffer a loss and the peril isn’t explicitly listed on your insurance policy.
For example, frozen pipes, water damage, and fallen tree limbs during a Missouri snowstorm would not be covered.
There is also no coverage for things like power surges, damage to your appliances, or theft.
These gaps in coverage highlight the importance of comparing your options. A DP1 policy may be great for your home but if you require more protection, DP2 or DP3 policies are available.
Is a DP1 Policy ACV in Missouri?
Yes, DP1 policies use actual cash value (ACV), providing a reimbursement after a loss while accounting for depreciation.
This means if you suffer a loss that would cost $15,000 to repair, such as roof damage, but your roof has depreciated over time by $5,000, you’ll only receive a $10,000 reimbursement from your claim.
Keep in mind that inflation also means ACV can make it even more difficult to restore a loss.
The bottom line is that landlords save money on premiums but there is a trade-off in how rentals are protected as a result.
The Difference Between a DP1 and DP3 Insurance Policy for Missouri Landlords
There are a few main differences between DP1 and DP3 landlord insurance. Here’s how each affects rental properties in Missouri:
- Cost: A DP1 policy is going to have a lower premium than DP3 insurance.
- Perils: You’re covered for more with a DP3 policy because it uses an open peril basis instead of the DP1’s named peril basis. This means with a DP3 policy, there are more perils you are covered for unless it’s explicitly excluded by your policy.
- Reimbursement: Landlords won’t receive as much money after a loss with a DP1 policy because of ACV coverage. DP3 policies use replacement cost value (RCV) which doesn’t account for depreciation, providing you with enough money to fully restore the loss to your property.
Get a Missouri DP1 Policy Quote
If you’re a landlord in Missouri, how you protect your investment is important. You’ll need the right coverage for the lowest price but it’s also important to work with carriers you can trust.
Here at Freedom Insurance Group, we’ve partnered with many top-rated insurance companies providing trusted coverage that’s there when you need it.
Our agents can help you compare your options to identify the lowest price for the protection you deserve.
Ask an agent today to shop for a DP1 policy and compare your options or use our free Missouri landlord insurance quote tool to compare multiple carriers and policies quickly.
