DP1 and DP3 are both dwelling property insurance policies that protect homeowners and landlords. However, a DP3 policy provides broader coverage because it insures your dwelling on an open perils basis.
DP1 and DP3 policies are both predominantly used to protect investment properties. The key differences between these policies are the types of coverage offered, the number of perils covered, and how they settle claims.
For starters, the DP3 is described as having more robust coverage than a DP1 because the DP3 is an open perils policy. That means it protects your home against all sources of loss except those the policy names as exclusions. A DP1 only protects against nine specified perils.
Another difference between DP3 policies and DP1 policies is how they pay for losses. A DP1 only protects your dwelling for its actual cash value . With a DP3, the structure of your home is usually covered for its replacement value , or what it would cost to rebuild your home from the ground up with similar materials after a total loss.
DP3 policies purchased through Kin can also include coverage for:
You may also be able to add a roof surfacing payment schedule endorsement to your policy. Adding this endorsement changes your coverage so that wind and hail claims for your roof are paid on a schedule based on your roof’s age. All other covered losses to your roof and the rest of the home’s structure are insured for their full value. This adjustment usually means we can insure homes with older roofs and offer a sizable premium discount.
Take a look at the difference between DP1 and DP3 to get a better understanding of what each policy covers.
