HO3 or DP3? | Lighthouse Insurance (2024)

FAQs

HO3 or DP3? | Lighthouse Insurance? ›

An HO3 policy provides more robust coverage than a DP3 policy. The coverage included in an HO3 policy will vary depending on whether you own a single-family or multi-family home. In a single-family home, a typical HO3 policy will cover the structure and home's contents as long as damage is caused by a covered peril.

The biggest difference between DP3 and HO3 is the type of risk each covers. DP3 policies are most commonly for properties the owner rents to others. An HO3 policy is for owner-occupied homes. Notice, too, that some coverages are added by default, while others are optional.

What is a DP3 policy? A DP3 policy is dwelling property insurance that's customized to fit homes with older roofs or homes used as investment properties. Many insurers don't cover homes with roofs older than 10 years in coastal states or homes used for short or long-term rentals.

An HO3 is a type of home insurance policy that covers your home and other structures on an open-perils basis, and your personal property on a named-perils basis.

The HO3 is a special form policy while the DP2 is a named peril policy. Thus, the DP2 only provides coverage for the “perils” specifically named in the policy whereas the HO3 covers all perils except that which is excluded in the policy. The HO3 provides coverage for “Wind Driven Rain”, while the DP2 does not.

An HO3 policy is insurance lingo for a basic homeowners insurance policy. It's essentially just a contract between you and your insurer.

The DP-3 insurance policy typically covers perils such as theft and fire, but not natural disasters like floods and earthquakes. Those typically require additional coverage.

A DP-3 offers “open” peril coverage. A peril is any type of event or occurrence that may affect your home like fire, theft, wind, or hail.

Sudden & Accidental Water Damage is covered by some DP-3 rental property insurance policies. Many of the other types of water damage, like Water Backup, may be endorsed onto the policy for an additional premium depending on the company offering the insurance.

Higher liability limits are usually available on a commercial lines form than a personal lines form (DP-1 or DP-3). Higher Property limits are also usually available on a commercial form over a personal lines form. Most carriers limit their exposures on dwelling fire forms (both from a minimum and maximum basis).

What are the two main types of homeowners insurance? ›

A standard HO-3 home insurance policy typically includes replacement cost value (RCV) for your dwelling and other structures coverage. This means that the insurance company pays for the structures to be rebuilt with materials at current costs up to your coverage limits following a covered claim.

The HO 3 only covers loss from rain, snow, sleet, sand, or dust to personal property inside a building under limited circ*mstances. Specifically, the direct force of wind or hail must first damage the building and cause an opening in a roof or wall.

An HO3 policy provides more robust coverage than a DP3 policy. The coverage included in an HO3 policy will vary depending on whether you own a single-family or multi-family home. In a single-family home, a typical HO3 policy will cover the structure and home's contents as long as damage is caused by a covered peril.

What is A DP3 Policy? A DP3 policy is a dwelling-fire policy for rented residential properties. These policies are intended for landlords or homeowners renting out homes and not for commercial properties. A DP3 policy covers the property structure and any furnishing or appliances owned by the landlord.

The DP3 policy provides the better coverage and is the policy type that we recommend. The DP1 policy is known as the Dwelling Fire Form 1 policy. This policy is essentially a building only policy that only offers coverage to named perils.

Although an open peril policy, a DP3 does exclude risks like earthquakes and floods. However, you can choose to cover these types of perils with an endorsem*nt. You also typically won't find a renter's personal belongings covered under the policy. Renters can obtain renters insurance to protect these items.

A: Think of home insurance as a package of protection. Dwelling coverage is simply one part of that package. It covers the home itself —not the contents or land. Just the structure.

Occupancy: The HO3 policy is designed for owner-occupied homes, while the DP3 policy is intended for non-owner-occupied properties, such as rentals or vacation homes. Personal property coverage: The HO3 policy automatically includes personal property coverage, while the DP3 policy typically does not.