Thanks to exotic beaches, world-class attractions, and ideal weather, Florida is a popular destination for vacationers and snowbirds worldwide. Whether they’re taking a short-term trip or planning for an extended stay, many tourists want to experience the comforts of home when visiting the Sunshine State. And what better way is there for them to feel at home than by renting a home? If you’ve considered transitioning your property from “home sweet home” to a “home away from home” for tourists, you might be asking yourself, do I need to change my homeowner’s insurance policy? What type of policy do I need for my rental property? Making the property insurance transition from homeowner to landlord is as easy as D-P-3.

What is a DP-3 policy?

A DP-3 (DP-3C for condos) is a Dwelling Fire policy, but don’t let the name mislead you – it covers more than just fires. How much more depends on the coverage options and coverage limits you select. DP-3 policies are designed to offer protection for rental properties, but can be used in other situations. It’s important to note that renters / tenants of the home who wish to have their furniture and personal belongings covered need to purchase a renter’s insurance policy.

Why consider a DP-3 policy?

A DP-3 policy benefits anyone renting out his or her property because the amount of personal property attached to DP policies is much less than a standard HO-3 Homeowners insurance policy. Additionally, DP-3 policies provide protection if the structure of the home is damaged by a covered peril and results in loss of rent. DP-3 Loss of Use coverage applies in cases where the rental property has rendered the home uninhabitable and provides the insured owner of the property with rental income while the home is being repaired.

DP or not DP?

DP-3 policies should not be confused with Homeowner (HO-3) policies. DP-3 policies do not offer the same level of protection that a HO-3 policy offers for a primary residence. However, a DP-3 policy can be used for owner-occupied properties in cases where a standard Homeowner’s policy is not ideal. The DP-3 can be written with or without personal property coverage and, depending on occupancy, may include additional living expense or loss of use coverage. Liability coverage can also be excluded from a DP-3 policy. It is important to discuss your needs with a qualified insurance agent to determine if a DP-3 policy is right for you.