What Types of Policies Exist?
Much like homeowners insurance, there are several types of Rental Property Policies that exist. The most basic type of policy is the DP-1 form. It provides the cheapest coverage because it only provides coverage for perils explicitly named in the policy. This means if something damages the property and is not named outright in the policy, there is no coverage. It also covers damage on an Actual Cash Value (ACV), which means it will only replace the cost of the dwelling plus depreciation.
The second type of policy is the DP-2, which gives slightly more coverage than the DP-1. It covers more named perils, but also provides coverage for things like theft. This policy is more attractive as it will restore property on a Replacement Cost basis, which means it will pay for the cost of restoration.
The third type of policy, the DP-3, is the most comprehensive. It provides coverage for a broad range of perils, with only a few exclusions. It also provides Replacement Cost.