What it does
DP 3 insures the dwelling and other structures against direct physical loss unless excluded, and personal property against named perils. It includes Coverage D fair rental value and Coverage E additional living expense, and Other Coverages such as other structures (up to 10% of Coverage A), debris removal, tenant improvements (up to 10% of Coverage C), worldwide personal property (10% of Coverage C), trees and shrubs (5% of Coverage A, $500 per item), a $500 fire department service charge, collapse, glass and ordinance or law.
The 07 14 editions came from ISO's 2014 Dwelling Property multistate revision, which superseded the 12 02 editions; Washington has its own 07 25 state versions of the three policy forms.
Who needs it
Investors and small landlords who rent out one- to four-family dwellings, owners of seasonal homes, and homes held in LLCs or trusts that cannot use a homeowners form. Coverage A applies to a dwelling used principally for dwelling purposes.
Key provisions and limits
- Coverage B does not cover other structures rented to non-tenants (unless used solely as a private garage) or used in whole or part for commercial, manufacturing or farming purposes.
- Coverage D pays lost rent for the time needed to repair, and up to two weeks when a civil authority bars use after damage to a neighboring location.
- The 2014 edition redefined collapse as abrupt collapse, replaced the vermin exclusion with a broader animal nesting or infestation exclusion and applied a single highest deductible per loss.
Quoting and selling notes
- The dwelling forms contain no liability coverage. Landlords need premises liability from DL 24 01 (personal liability supplement), HO 24 70 on their homeowners policy, or a lessor's risk only commercial general liability policy.
- Get rent amounts and months rented to set Coverage D, and ask about vacancy, renovations and short-term rentals.
- Pair with DL 24 01 (or HO 24 70 / a CGL) for landlord liability and with an umbrella if the client has one.
Editions and availability
Current edition 07 14, replacing 12 02, 07 88. Carriers adopt ISO editions state by state, so the edition on a given policy can lag the newest one.
Program notes
Dwelling policies are written for the property owner, not the occupant, and are the usual vehicle for landlords of one- to four-family dwellings. Because the forms carry no liability coverage, review every dwelling file together with DL 24 01 (or the homeowners or commercial policy that provides premises liability), and with any personal umbrella the client carries.
