Ask an Agent
Have a question? We're here to help.
Ask an agent for free
Question

What is the difference between a DP-1 and a DP-3 policy?

I'm a little confused by all the letters and numbers in home insurance. What are the differences between DP-1 and DP-3? What makes them different from the HO policies?

Dec 19, 2022 Columbus, OH

Answer
Author profile picture

Beth Swanson

SEO Content Strategist

Credentials
  • Licensed Insurance Agent — Property and Casualty

Beth joined The Zebra in 2022 as an Associate Content Strategist. She is a licensed insurance agent whose goal is to make insurance content easy to r…

This is an excellent question, thanks for asking! Home insurance can definitely be confusing.

The "DP" in DP-1 and DP-3 stands for "Dwelling Policy."  These policies are typically reserved for homes that you own that are rented to a tenant. Dwelling policies may also apply to vacation homes or homes under construction. That is the big difference between HO and DP. Now, tenants themselves would want to carry renters insurance under an HO-6 policy. Check out our home insurance page to get more in-depth with those policies.

In terms of what is covered under DP-1 vs a DP-3, they are very different policies.

  • A DP-1 only provides coverage for 9 perils (fire/lightning, internal and external explosions, windstorm, hail, riots, smoke, aircraft, vehicles, and volcanic explosions).  A DP-1 also only provides coverage for your home's depreciated value based on its age.
  • A DP-3 is generally preferable because of its wider coverage. It provides coverage for all perils except those specifically excluded from the policy (like earthquakes or floods).  Your home would also be covered at full replacement cost.  This means that if the home burned down to the ground, it would be rebuilt and replaced.  Whereas on a DP-1 you would only get the amount of money the home is worth minus depreciation for the age of the home.

We hope this helps distinguish things for you!

Ask an Agent
Have a question? We're here to help.
Ask an agent for free

Insurance is complicated, but it doesn't have to be.

The Zebra searches all of the top insurance companies, in one place, so you can compare the cost and coverage you need to protect your car, home and other property.

Step 1: Tell us a little about yourself

Choose an insurance product and enter your zip code to get started.

Step 2: Sip your coffee while we find the best quotes

Enter the necessary information and then sit back while we find quotes from 100 top insurance carriers.

Icon Fill Form

Step 3: Compare your quotes

Compare quotes side-by-side to find the right match for you, whether it's home, auto, or more.

Icon Agent

Step 4: Let our agents do the hard work for you

Once you pick your policy, our agents are here to get you over the finish line. Then just relax and enjoy your savings.

Compare home insurance rates today!

Location pin icon
No junk mail. No spam calls. Free quotes.

Related Questions

Other people are also asking...

Will an insurance company let you underinsure a home?

Thank you for reaching out to The Zebra! Every insurance company is a little bit different. Most will not allow you to insure a home underneath its replacement cost. Here at The Zebra, we do not sell any home or rental properties for less than their replacement cost. One option that might fit your …
Dec 19, 2023 Lexington, KY

Is my deck covered by my homeowners policy?

Since the deck you recently had built is attached to your home, the structure should be covered under the "dwelling" portion of your homeowners insurance. If the deck were not attached to your home then it would be covered under the other structures portion of your policy. It's impor…
Jun 7, 2017 Salina, KS

Why is the deductible so high for wind damage to my home?

Thank you for reaching out to The Zebra! Every insurance company is a little bit different. They all have different combinations of coverages and deductibles. Sometimes they base your deductible on the dwelling coverage on your home, which is what sounds like happened in your case. Deductibles for …
Nov 8, 2023 Howell, NJ

Cost of sinkhole coverage in Tampa, FL

Florida currently requires homeowners insurance policies and by extension insurance companies to offer coverage for what they call “Catastrophic Ground Collapse,” which may not actually cover damage caused by a sinkhole. Catastrophic Ground Collapse coverage differs from sinkhole insurance by requi…
Aug 1, 2018 Tampa, FL