The housing market has gone through drastic changes over the last decade and investors have taken advantage of this booming market. Many privately owned properties such as houses, condos, manufactured homes, and town houses are being leased out. Since these homes are not owner occupied a typical homeowner’s policy is out of the question.
To make sure your investment doesn’t go uninsured our carriers provide a Dwelling/Fire policy commonly referred to Landlord protection. There are several coverage levels to choose from with these policies ranging from DP1 (Basic form), DP2 (Broad form), to DP3 (Special form). Basic form coverage is very limited and only covers the property on an actual cash value, in addition it carriers many coverage exclusions. As you progress in coverage forms they then offer coverage on a replacement cost basis and there is broader spectrum of perils insured against. Understanding each form is very important when deciding on which policy to choose and at CityScape Insurance we are here to make sure you completely understand your options before a loss occurs.
- Building Replacement Coverage
- Extended Dwelling Coverage
- Premises Liability Insurance
- Optional Personal Property Coverage
- Optional Vandalism & Malicious Mischief Coverage
- Optional Residence Theft & Burglary Coverage
- Loss of Rents Coverage
- Building Ordinance or Law Coverage
- Coverage for Entity Owned Properties
- And More….
DP1 (Dwelling/Fire Basic Form) – The DP1 form provides the most basic coverage on a “named peril” basis. The perils insured against include; fire, hail, lightning, and internal explosion. Additional coverage options are available to endorse on the policy including; water damage (accidental discharge), vandalism, and malicious mischief. It’s important to know that this policy settles a claim on an “actual cash value (ACV)”. Certain carriers will offer an endorsement to cover the property on a “replacement cost” basis.
DP2 (Dwelling/Fire Broad Form) – The DP2 form is the next step up from a DP1 and automatically settle claims and losses on a “replacement cost” basis. This form also extends coverage for vandalism/malicious mischief, water damage is still excluded unless endorsed onto the policy.
DP3 (Dwelling/Fire Special Form) – The DP3 form provides “all perils” coverage which is essentially a named exclusion form, this means if it’s not specifically excluded it’s covered. This form also automatically includes vandalism/malicious mischief , water damage coverage, and claims are settled on a “replacement cost” basis.
Before your new tenant moves in make sure you’re in compliance with the Arizona Residential Landlord and Tenant Act. “Provided by the Arizona Department of Housing”