(800) 253-1482Tennessee DP2 Policy for Landlords
Summary: Tennessee landlords can use a DP2 policy to protect against 18 specific perils. While it costs more than basic coverage, it offers better protection and is still cheaper than a DP3 policy. Understanding your risk tolerance and comparing multiple carriers helps you find the best coverage at the lowest price. Estimated Read Time: 2 mins
You have plenty of landlord insurance options in Tennessee, but a DP2 policy helps balance protection and costs if you’re willing to take on some risk.
It's ideal for those who are willing to manage some risk but may not suit every property.
If you understand their risk tolerance and are prepared, DP2 policies can find affordable coverage for key perils.
Explore how DP2 coverage works, compare other landlord insurance options, and find affordable quotes.
What Is DP2 Insurance in Tennessee?
Also called a Dwelling Fire Form 2, a DP2 policy provides landlords in Tennessee with coverage against 18 named perils, a step above minimum coverage.
This is a great policy for people looking to balance the cost of premiums with protecting their rental homes.
How you’re protected will vary depending on the carrier, so be sure to compare your options and double-check your policy when shopping for coverage.
What DP2 Coverage Covers for Landlords in Tennessee
Landlords are protected against 18 specific perils with a DP2 policy. Not only is your rental home protected but so too are the other structures on your property, including fences, garages, patios, and sheds:
- Aircraft
- Broken glass
- Bulging/cracking
- Burglaries
- Collapse
- Discharge of water or steam
- Electrical
- Explosions
- Falling objects
- Fire and lightning
- Frozen pipes
- Riots
- Smoke
- Vandalism (coverage from theft may also be available)
- Vehicles
- Volcanic eruption
- Weight of snow
- Windstorm/hail
With DP2 coverage, your landlord insurance may also protect personal property that is used to maintain your rental through a limited amount of contents coverage.
This addition does not apply to personal property not used to maintain your rental nor does it protect the personal belongings of your renters, who will need a separate renter's insurance policy to do so.
Furthermore, loss of rent coverage is also available if your rental home suffers damage that forces your tenants to become displaced.
Replacement Cost Value Coverage
DP2 insurance uses replacement cost value (RCV) for claims, which covers the full cost to restore your property, unlike DP1 policies that use actual cash value (ACV) that deducts depreciation.
RCV ensures landlords can more accurately cover restoration costs, factoring in inflation and rising construction expenses.
Here’s Who Can Benefit From a DP2 Policy in Tennessee
A DP2 insurance policy isn’t for everyone but can benefit many landlords in Tennessee. If you fit the following criteria, this type of coverage may be right for your rental home:
- You’re ok accepting some risk.
- Your home isn’t vacant.
- You are prepared to cover the premiums and financially prepared to fix your home if a peril occurs that isn’t covered by your policy.
Get DP2 Policy Quotes in Tennessee
If you have a rental property in Tennessee, Freedom Insurance Group is here to help you find the right protection at the best price available.
We’ve partnered with top-rated carriers and help landlords like you quickly compare premiums and coverages all in one place.
Ask an agent or get a landlord insurance quote today by clicking the link to compare DP2 policies and other types of coverage in just a few clicks.
