Policy Terms
Dwelling Fire
Definition
A dwelling fire policy (DP policy) is a property insurance policy designed for residential structures that do not qualify for a standard homeowners policy — most commonly tenant-occupied (landlord-owned) properties, vacant homes, or properties under renovation. Dwelling fire policies come in several forms (DP-1, DP-2, DP-3), offering progressively broader coverage. Unlike a homeowners policy, a standard dwelling fire policy does not include personal liability or personal property coverage for the owner, though these can sometimes be added by endorsement.
In Zach’s Words
“A dwelling fire policy is what you get when a standard homeowners policy doesn't fit — usually because you're not living in the property yourself. If you own a rental property, a house that's sitting vacant, or a place that's being renovated, a dwelling fire policy is the way to insure it. It covers the structure against things like fire, wind, and other perils, but it's more bare-bones than a homeowners policy. It won't include your personal belongings or liability coverage unless you add those on. There are different levels — DP-1 is the most basic (named perils only), DP-3 is the broadest (open perils on the structure). If you're a landlord, this is probably the policy type you need.”
— Zach Nadler, CIO