Landlords! As with all insurance, the coverage and cost will vary, making not all policies or insurers the same by any means. Each insurer will cover damage differently. As as a landlord it is in your best interest to understand the coverage / cost offered and to find the insurance policy that fits your rental property needs. Here at Picket Fence Properties, Northern Colorado’s premier property management company, we have compiled an explanation of dwelling coverage options for you.
Different from standard homeowner insurance, landlord insurance holds a higher risk, as to be expected. Failure to state that the property is a rental may eliminate the payout of a claim. All rental insurance must cover dwelling coverage, which is called “dwelling insurance” often.
Dwelling insurance is for the rebuilding / repair of the physical structure of the property if the damage is a result of a covered hazard. This means you will need to be aware of the specific covered hazards within your specific insurance policy (these may vary.)
There are three specific dwelling coverage options available typically: DP1, Broad DP2, and DP3 / Special Form.
- DP1 covers specifically named perils within the policy. This may be a short list that only includes fire, lightning, and internal explosion. Additional coverage items may be added. These additional coverage items may include riots, civil commotion, external explosions, vehicles, smoke damage, aircraft, hail, windstorms, and volcanic eruptions.
- Broad DP2 is similar to DP1 and only covers exactly named perils such as fire, lightning, and internal explosion. However, the supplementary items available to add to your policy will be burglary, weight of ice and snow, the collapse of the building, freezing, falling objects, accidental discharge of water / steam, broken glass, damage from sudden and/or accidental tearing, artificially generated electrical current, cracking, and burning or bulging of steam/water systems.
- Special Form / DP3 this expands Broad DP2 coverage even further. The remarkable part of Special Form / DP3 is that everything is covered unless the policy specifically states that an item is not covered (this is similar to “full coverage” insurance verbiage.) Because of the large availability of coverage with this option, this is considered the most comprehensive coverage for rental properties.
Check with your insurance broker for policies on your specific rental property.
Helping you keep your house a home,
Picket Fence Properties, located in Windsor, CO is Northern Colorado’s Top Notch Property Management company helping owners with their rentals, income/investment properties and vacancies in Northern Colorado. Are you a owner of a home for rent or that you’d like us to manage? We help you have the perfect tenants in NoCO. Are you looking for somewhere to rent in Greeley, Loveland, Fort Collins, Wellington, Eaton, Evans, Windsor, Frederick, Firestone? Look no further, we have all your real estate and rental needs covered. Check out website for vacancies today.