(800) 253-1482Tennessee DP3 Policy for Landlords
Summary: DP3 policies are the closest option to homeowners insurance for landlords, offering broader coverage but with higher premiums. Some condos and duplexes may also benefit, depending on the property. For Tennessee landlords seeking optimal rental protection, experts recommend a DP3 policy. Estimated Read Time: 3 mins
Offering landlords the best form of coverage for rental homes, a DP3 policy (Dwelling Fire policy) is the closest thing to homeowners insurance you can find.
You have options for landlord policies but DP3 insurance policies are the most recommended form of coverage in Tennessee.
These policies provide your rental home more protection and higher compensation if you suffer a loss and need to restore your property.
Learn more about how a DP3 dwelling policy can help you and get quotes from top-rated carriers near you to save on premiums.
What Does a DP3 Insurance Policy Cover in Tennessee?
A DP3 policy covers rental properties and homes with bad roofs, along with vacation homes and some duplexes.
These policies mirror what you can expect through a standard home insurance (HO3) policy, but aren’t as comprehensive and focus on rental-specific needs in most cases.
DP3 coverage uses an open peril basis, which is why landlords receive more protection. Unless a peril is explicitly excluded, you’re covered, though policy limits still remain.
DP3 Policy Exclusions for Landlords in Tennessee
DP3 policies, like home insurance, have exclusions. Landlords can buy extra coverage for risks such as flood damage, vandalism, or burglaries.
Staying up-to-date with Tennessee building codes is crucial, as some endorsements can help cover necessary repairs.
Umbrella insurance can provide additional protection for large liability losses and legal expenses.
Personal property is usually not covered unless used for maintaining the rental, so tenants should get renters insurance to protect their belongings.
Still, even with these exceptions, DP3 policies provide the most complete form of landlord insurance in Tennessee that is available.
HO3 vs. DP3 Policies in Tennessee
If you own a property but don’t stay in the home and are renting it, you’ll need a DP3 policy.
These policies are ideal for duplexes, townhomes, and other rental property types.
For your own residence, an HO3 homeowners policy is more suitable.
DP3 policies cover rental-specific risks, such as loss of rental income, while HO3 policies focus on protecting owner-occupied homes from relevant perils.
You’ll find that DP3 coverage is the closest to an HO3 policy you’ll find in landlord insurance.
Be sure to consult an insurance agent to evaluate your risks, budget, and coverage needs.
DP3 vs HO6 Insurance Policy Comparison for TN Landlords
HO6 policies cover condos and co-op units, including dwelling, personal property, liability, living expenses if the home is uninhabitable, and loss assessments from condo associations.
In contrast, a DP3 policy is designed for rental properties, including condos.
Understanding which is right for you comes down to where you live in most cases.
If you live in your condo, you need an HO6 policy; if you’re renting it, a DP3 landlord insurance policy is appropriate.
DP3 Policies Use Replacement Cost Value in Tennessee
DP3 insurance policies provide reimbursements using replacement cost value (RCV) coverage.
By doing so, landlords receive the full amount needed to restore rental homes after a claim.
However, you must maintain sufficient policy limits, otherwise, if the costs exceed your limits, you'll still pay the difference out of pocket.
Landlords should review their policy limits annually to ensure adequate protection.
If your DP3 coverage is insufficient, consider increasing your limits or comparing other carriers for better options.
Get a DP3 Policy Quote in Tennessee
No matter what kind of property you have, every home deserves personalized coverage at the lowest possible price.
Freedom Insurance Group is proud to help landlords in Tennessee find affordable coverage that meets their needs.
We work with top-rated carriers that deliver coverage you can trust and by comparing your options, you’ll find the right protection at the lowest price.
To get quotes today ask an agent about our DP3 policies or simply use our online landlord insurance quote tool to compare your options with just a few clicks.
