(800) 253-1482Missouri DP2 Policy for Landlords
Summary: Missouri landlords can use a DP2 policy to cover their rentals from 18 perils. Although DP2 policies cost more than basic coverage, you receive more protection while still saving on insurance. It’s important to understand your risk tolerance and compare multiple carriers to find the right coverage at the lowest price. Estimated Read Time: 3 mins
A DP2 policy can help Missouri landlords balance their protection while also saving on premiums.
This type of coverage is perfect for property owners looking to take on a little more risk to save money.
While not the right choice for every property, landlords who understand their risk tolerance can find affordable coverage from important perils.
Take a closer look below at how DP2 coverage covers your rental, the other landlord insurance options you have, and how to find affordable quotes.
What Is DP2 Insurance in Missouri?
A DP2 policy (Dwelling Fire Form 2) is a type of landlord insurance in Missouri that provides rental homes with protection under a named perils basis. It’s a middle ground between the basic coverage of DP1 and DP3 policies.
Falling in the middle, DP2 coverage helps you pay less but covers more than the bare minimum. However, each policy is different and how you are protected will differ from carrier to carrier.
How DP2 Coverage Helps Missouri Landlords
A DP2 policy can protect your home and things like garages, fences, patios, and sheds from 18 specific perils.
If you want protection from lawsuits, you might need to add liability coverage to your policy.
In Missouri, landlords are only covered for the problems listed in the policy. Make sure to check the details to know how you are protected.
With that being said, here are the most common perils DP2 coverage will protect you from:
- Aircraft
- Broken glass
- Bulging/cracking
- Burglaries
- Collapse
- Discharge of water or steam
- Electrical
- Explosions
- Falling objects
- Fire and lightning
- Frozen pipes
- Riots
- Smoke
- Vandalism
- Vehicles
- Volcanic eruption
- Weight of snow
- Windstorm/hail
Replacement Cost Value Coverage
DP2 insurance coverage uses a replacement cost value (RCV) when you file a claim for reimbursement after a loss.
This is important as DP1 policies use actual cash value (ACV) reimbursement and will subtract depreciation, subsequently giving you less money to restore your loss.
RCV helps landlords better prepare for the cost to restore their home back to new while also accounting for inflation and rising construction costs.
Contents Coverage
Landlord insurance in Missouri usually doesn't cover your personal property at a rental home, except for items that help the rental function.
For example, if you leave a lawnmower to keep your yard tidy, you can cover it.
You can add limited contents coverage to a DP2 policy for additional protection if needed.
However, it's important to note that tenants need their own renter's insurance for their belongings.
If you want protection from theft, you may have options but will need to check with your carrier first.
Loss of Rent Coverage
When rentals are uninhabitable after a major loss, landlords lose revenue. However, with loss of rent coverage (fair rental value coverage), landlords can maintain this cash flow while fixing their homes.
Your policy limits are tied to the maximum amount of dwelling coverage your landlord insurance policy possesses.
Many landlords may look to government programs during disasters, however, they can lag and require many hassles to finally see compensation.
Having loss of rent coverage is an important consideration that helps you not only protect your investment but also your cash flow during more extreme circumstances.
Who Needs DP2 Coverage in Missouri?
If you're a Missouri landlord who doesn't mind accepting some risk but wants more advanced protection for your home and rental income, a DP2 policy may be right for you.
Landlords benefit from DP2 coverage if their rental home is not vacant and they can balance the risk of a DP2 policy with lower premiums, while still protecting against many types of emergencies.
You should be able to replace property affected by a major loss with the help of insurance if you have DP2 coverage as not everything is covered.
Each policy is different, so it's best to compare your needs, budget, and risks with a licensed insurance agent to find the right policy for you.
Get Missouri DP2 Policy Quotes
Managing your rental properties requires a lot of moving pieces, so, we’ve made finding the right landlord insurance in Missouri simpler.
At Freedom Insurance Group, we’ve partnered with multiple top-rated insurance carriers to deliver you quality coverage for less.
Ask an agent today or use our free, online landlord insurance quote tool to find the right DP2 policy for you as well as compare other coverages available in Missouri for your rental.
