(800) 253-1482Missouri DP3 Policy for Landlords
Summary: The closest type of insurance to a homeowner's policy that landlords have available is the DP3 policy. While a DP3 policy offers more coverage, you will also pay higher premiums. Even some condos may benefit from the coverage, though this differs by property. For Missouri landlords looking to protect their rentals in the best way possible, experts recommend DP3 policies. Estimated Read Time: 3 mins
As the most popular and recommended form of landlord insurance, a DP3 policy (Dwelling Fire policy) is the most complete type of protection out there.
Learn more about how DP3 insurance policies help keep rental homes in Missouri safe. You can even get quotes to save on coverage from top-rated carriers in your area.
What a DP3 Policy Covers in Missouri
A DP3 policy is a type of insurance for rental homes and homes with bad roofs in Missouri, covering a wide range of risks.
It's a popular option for protecting homes that aren't primary residences, including vacation homes and duplexes, as well as rental investments.
While not as comprehensive as standard home insurance (HO3), DP3 coverage is there for you through more risks than other landlord insurance while guarding against major losses.
DP3 policies work on an open peril basis, meaning they cover everything unless specifically excluded, however, each policy has coverage limits.
In the event you suffer a loss that exceeds your policy limits, you'll need to pay the difference yourself.
Missouri DP3 Policy Exclusions
Just like home insurance, DP3 policies don't cover everything, there are exclusions.
Although there are some things not included in your coverage, landlords can buy extra coverage for excluded risks to better protect against potential perils.
For example, flood damage needs a separate policy, and damage from vandalism or burglaries may not be covered by your policy.
You also need to stay up to date on Missouri building codes, as repairs or upgrades might have to be paid out-of-pocket if you don't have the right endorsements in place.
For big liability losses, umbrella insurance is helpful and protects your assets while covering legal expenses.
Also, remember that personal property isn't usually covered unless it's used to maintain your rental home.
Your tenants will need to protect their personal belongings on their own with a renters insurance policy as well.
HO3 vs. DP3 Policies in Missouri
If you own a home you don't live in, a DP3 policy can be a great option for protection.
This is why DP3 coverage is ideal for rental properties like duplexes or townhomes.
Conversely, if the property is your residence, an HO3 homeowners policy is more suitable.
While both policies protect homes, they differ in coverage specifics.
DP3 policies cover risks associated with renting, such as loss of rental income, and are tailored for non-owner-occupied homes compared to an HO3 policy which protects your residence.
It’s essential to consult with an insurance agent to assess your risks, budget, and the best coverage for your situation.
Comparing DP3 and HO6 Policies
Similar to how landlord and standard home insurance differ, there are some variations between covering a rental property and protecting a condo.
HO6 coverage is for condos and co-op units, which protects the home’s dwelling, and personal property.
These policies also protect against liability claims, provide living expenses if your home is uninhabitable, and can even protect you from loss assessments from condo associations.
A DP3 insurance policy on the other hand is built specifically to cover rental properties and includes condos.
Basically, if you live in your condo, you need an HO6 policy and if you rent your condo, landlord insurance is the right coverage.
DP3 Reimbursements for Missouri Landlords
DP3 insurance policies use replacement cost value (RCV) coverage, which means you'll get the full amount needed to restore your loss after a claim.
However, you must keep appropriate policy limits. If costs have risen and your limits are too low, you'll have to pay the difference yourself.
Landlords should review their policy limits yearly to ensure adequate protection.
If you find that you don't have enough coverage, you'll need to increase your limits or shop and compare other carriers to weigh your options.
Get a DP3 Policy Quote in Missouri
Every rental is different and you deserve coverage that is personalized and affordable to meet your needs.
At Freedom Insurance Group, we help landlords in Missouri find the right landlord policy to protect against relevant perils while saving on premiums.
In the end, you receive protection and peace of mind while keeping more money in your pocket.
To get started, ask an agent how we can help you compare DP3 policies among top-rated carriers, or use our free, no-obligation Missouri landlord insurance tool for quotes in just a few clicks.
