Types of Property Insurance Policies

 

♠ Dwelling Fire (DP-1) 

A very basic (limited) policy with named perils for rental rental properties. All covered perils are listed in the policy. Some of the perils usually listed are: Fire or Lightning, Windstorm or Hail (unless excluded), Explosion, Riot or Civil Commotion, Aircraft, Vehicles (unless caused by the insured), Smoke, Vandalism or Malicious Mischief, Theft (see limits of liability – usually $1,000), and Volcano Eruption. This policy often protects owners of a home, condominium or rental property with coverage for the dwelling, other structures, personal property and loss of rent. Tenant’s personal property coverage can also be available. Homes covered by this type of policy are generally tenant occupied. This policy is similar to a DP-3, but covers fewer perils at a reduced premium. This is an “actual cash value” (ACV) policy on all coverage, depreciation will be deducted from damages. This policy may contain a (Water Exclusion).

 

 

 

♠ Dwelling Fire (DP-2) 

A broad policy with named perils for rental properties. All covered perils are listed in the policy as with DP1. Contains all the covered perils on HO-1 along with additional covered perils. Additional covered perils might include; Falling Objects, Weight of Snow or Sleet, Accidental Discharge or Overflow of Water or Stream from within a Plumbing System, Sudden and Accidental Water Damage from Rupture, Tearing Apart, Cracking, Burning, Bulging or Freezing of Plumbing or related Systems (not due to lack of maintenance) such as Heating, Air Conditioning, Fire Protective Sprinkler, or Hot Water Heating Systems, Sudden and Accidental Damage from Artificially Generated Electric Current. Offers the owner of a home, condominium or rental property with coverage for the dwelling, other structures, personal property and loss of rent. Tenant’s personal property coverage can also be available. Homes covered by this type of policy are generally tenant occupied. This policy is similar to a DP-3, but covers fewer perils at a reduced premium. Unlike DP-1, this policy contains “actual cash value” (ACV) for personal property and ‘replacement cost’ (RCV) for the dwelling and other structures. This policy may contain a (Water Exclusion).

 

 

 

 Dwelling Fire (DP-3) 

A special form policy (Most Common).  Best coverage available for rental properties. Known as an ‘all risk’ policy unless it’s excluded in the policy language. Exclusions usually found on this policy are; Ordinance and Law, Earth Movement, Water Damage from Flood, Waves, Tidal Waves, Power Failure, Neglect, War, Nuclear Hazard, Intentional Loss, Governmental Action. Provides owners of a home, condominium or rental property with more complete coverage for the dwelling, other structures, personal property and loss of rent or additional living expenses. Tenant’s personal property coverage can also be available. Homes covered by this type of policy are generally tenant occupied. As with DP-2, this policy contains “actual cash value” (ACV) for personal property and ‘replacement cost’ (RCV) for the dwelling and other structures.

 

 

Homeowners (HO-1) 

A very basic (limited) policy for homeowners. All the covered perils are specifically listed. If it is not named on the policy it is not covered. Some of the perils usually listed are: Fire or Lightning, Windstorm or Hail (unless excluded), Explosion, Riot or Civil Commotion, Aircraft, Vehicles (unless caused by the insured), Smoke, Vandalism or Malicious Mischief, Theft, (see limits of liability – usually $1,000), Glass Breakage, Volcano Eruption.  Normally this policy contains “actual cash value” (ACV) for personal property and ‘replacement cost’ (RCV) for the dwelling and other structures. This policy contains a (Water Exclusion).

 

 

Homeowners (HO-2) 

A broad policy for homeowners. All the covered perils are specifically listed. If it’s not named on the policy it is not covered. Contains all covered perils on HO-1 along with additional covered perils. Additional covered perils might include; Falling Objects, Weight of Snow or Sleet, Accidental Discharge or Overflow of Water or Stream from within a Plumbing System, Sudden and Accidental Water Damage from Rupture, Tearing Apart, Cracking, Burning, Bulging or Freezing of Plumbing or related Systems (not due to lack of maintenance) such as Heating, Air Conditioning, Fire Protective Sprinkler, or Hot Water Heating Systems, Sudden and Accidental Damage from Artificially Generated Electric Current. Normally this policy contains “actual cash value” (ACV) for personal property and ‘replacement cost’ (RCV) for the dwelling and other structures.

 

 

 

Homeowners (HO-3) 

A special form policy (Most Common). Usually the best available coverage for owner occupied properties. Combination Open Peril and Named Peril (for Personal Property). Also known as an ‘all risk’ policy unless it’s excluded in the policy language. Exclusions usually found on this policy are; Ordinance and Law, Earth Movement, Water Damage from Flood, Waves, Tidal Waves, etc., Power Failure, Neglect, War, Nuclear Hazard, Intentional Loss, Governmental Action. Provides the owner with building, other structures, personal property, additional living expense and liability coverage. Normally this policy contains “actual cash value” (ACV) for personal property and ‘replacement cost’ (RCV) for the dwelling and other structures.  

 

 

 

Homeowners (HO-5) 

An Open Peril form policy (Not Common in Florida). This is the ideal and complete coverage available for owner occupied properties. Similar to an HO-3 with the distinction of an Open Peril for personal property vs. a Named Peril as in the HO-3.  Also known as an ‘all risk’ policy unless it’s excluded in the policy language. Provides the owner with building, other structures, personal property, additional living expense and liability coverage. Normally this policy contains ‘replacement cost’ (RCV) for personal property, dwelling and other structures.

 

 

♠ Renters (HO-4) 

Provides a renter/tenant of a home or mobile/manufactured home with personal property, additional living expense and liability coverage. Ideally for tenants to protect their personal belongings such as their electronics, furniture, and clothing in case of a covered loss.

 

 

Condo Unit Owners or Tenants (HO-6)

Provides the owner of condominium unit with interior building, personal property, additional living expense and liability coverage. The unit covered by this policy can be either owner or tenant occupied. Many condo unit owners have the misconception that the homeowners association’s master policy (HOA) protects their unit from a loss.  

 

 

Homeowners Older Homes (HO-8)

Provides the owner of an owner occupied home with building, other structures, personal property, additional living expense and liability coverage. Policy primarily keeps insurance companies from having to use expensive and/or inferior materials to replace or repair elements of an older home. This is an “actual cash value” (ACV) policy on all coverage, depreciation will be deducted from damages. This policy contains a (Water Exclusion).

 

 

 

Homeowner’s Association (HOA)

Provides the association with a master insurance policy which provides coverage for the Buildings such as residences (exterior walls), clubhouse, garages, carports, foundation, pipes, wires, conduits, utilities, heating, cooling, security systems, machinery and equipment, balconies, porches, decks, and patios, etc. Structures such as arbors, awnings, cabanas, sport courts, fences, fountains, gatehouses, gazebos, recreation fixtures, etc. Other property could include antennas, indoor/outdoor furnishings, signs, landscaping, fine arts, etc.

 

 

Business Owner’s (BOP)

Provides business owner’s with a policy which may include business property insurance, business interruption which provides reimbursement for up to a year of lost revenue resulting from an insured property loss, liability and flood insurance. Depending on the risks a business owner might face, the business owner can request additional coverage to the policy.

 

 

Commercial Property Insurance 

Provides a commercial property with coverage for the dwelling, furniture, equipment, outdoor signs, inventory, others property, landscaping, etc.

 

 

Mobile Home Owners (MHO-3) 

Provides the owner of an owner occupied mobile/manufactured home with building, other structures, personal property, additional living expense and liability coverage.

 

 

Mobile Home Tenant (MHO-4) 

Provides a renter or tenant of a mobile/manufactured home with personal property, additional living expense and liability coverage.

 

 

 

Mobile Home Dwelling Fire (MDP-1) 

Provides the owner of a mobile/manufactured home with coverage for the dwelling, other structures, personal property and loss of rent. Tenant or renter’s personal property coverage can be also be available. Premises liability coverage is optional. The mobile/manufactured homes covered by this policy are typically tenant occupied. This policy is similar to a DP-1, but is only issued for mobile/manufactured homes.

 

 

Policies vary from company to company and should be reviewed in order to determine the type of coverage available and what’s excluded in your individual policy.

 

 

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