Landlords need to protect their investments with either a DP-1 or DP-3 insurance policy. Depending on the property owner’s needs, a DP-3 policy is usually the better option since it provides broader coverage.

A DP-1 policy typically pays out actual cash value for damage, whereas a DP-3 policy can provide replacement cost coverage on the dwelling—something mortgage companies often require.

DP-3 policies can also insure the landlord’s personal property inside the rental. For example, items like couches, beds, and TVs may be covered. This can be especially important for vacation rentals, which usually must be insured under a Dwelling Fire policy if they are not homesteaded.

Whether you’re insuring a single-family home or a four-plex, ATC Agency has options to meet your needs. The insurance market is constantly evolving—give us a call today!