Rental Property Insurance – What Landlords Need to Know

There are a variety of insurance policies available for landlords who own one to four family homes. Some of these policies can be written on commercial insurance property policies, but more commonly, these policies are written on dwelling fire forms. The following breaks down the coverage parts of a dwelling fire insurance policy as well as some of the types of forms that are available.

Dwelling Fire 1 (DP1) and Dwelling Fire 3 (DP3) are the most widely used rental property insurance policies.

Dwelling Fire 1 policies are a named peril policy that typically cover riot, explosion, fire, lightening, volcanic eruption, smoke, hail, aircraft, and wind. Some carriers will allow vandalism and malicious mischief coverage to be endorsed onto the policy. These insurance policies are settled on an Actual Cash Value basis which is replacement cost minus depreciation.

Dwelling fire 3 forms are typically open peril policies, which means, whatever isn’t specifically excluded, is covered. The most common coverages that these policies give back is theft and water (Excluding Flood and Water Backup). These insurance policies are also settled on a replacement cost basis.

Refer to your insurance policy to understand what coverage you have on your rental property. To discuss and review your policies, contact us at 216-965-0646 or simply, request a quote.

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