- Dwelling Coverage
Like homeowner’s insurance, rental property insurance protects your property from physical damage resulting from risks like fire, lightning, wind, and others. Each policy will include covered perils, and its coverage will only extend up to the damage caused by them.
Some perils, such as vandalism and burglary, are typically not included in standard policies. However, you may have the option to purchase them as extra coverage for your policy if you want more extensive coverage. Other disasters like flooding and earthquake are also excluded in most regular policies, so you may need to get flood insurance or an earthquake rider for additional protection.
- Liability Coverage
If anyone is injured on your property and you are held responsible, liability coverage will help you pay for medical or legal fees associated with the incident. Your rental property insurance in ma will only cover costs up to your policy limits. If these are not enough to cover your liabilities, you can opt to get umbrella insurance for your property.
- Loss of Rental Income
This part of the policy helps cover for rental payments that may be lost if a covered peril causes your property to become uninhabitable. Like liability coverage, loss of rent coverage can pay up to the extent of a specific amount as a replacement for rent that you could have earned if your property was not damaged.
Aside from perils other than those specifically named in your policy, maintenance and tenants’ possessions are typically not included in a rental property policy. Some policies may also not cover sewerage problems, particularly if the problem happens on a street level.
Further, the coverage you choose may be based on the property you need to protect or the flexibility you need. LoPriore Insurance Agency offers three different policies for Rental Insurance. Do not hesitate to reach out to our team if you have questions or concerns about them.
Dwelling Fire Basic Form Policy (DP-1)
The DP-1 policy is the most affordable and provides only the most basic coverage. Your DP-1 form will list the events covered by this policy explicitly so you’ll have a clear understanding of what’s covered and what isn’t. Thus, in the event of a claim, you will be paid for covered damage minus depreciation (wear and tear that occurs over time). DP-1 coverage includes:
- Fire & Lightning
- Windstorm and hail
- Volcanic Explosion
- Reimbursement of rental income up to 12 months when a covered event makes the dwelling unfit to rent.
Dwelling Fire Broad Form Policy (DP-2)
The DP-2 policy is similar to the DP-1 policy but provides broader coverage. Covered events are listed on the policy for clarity, including additional events not covered by the basic form. Reimbursement for DP-2 generally provides current replacement costs without considering depreciation. DP-2 coverage includes the same coverage as the basic policy with these additions:
- Burglary Damage
- Glass Breakage
- Falling objects
- Frozen Pipes
- Accidental water overflow
- Weight of Ice and Snow
- Electrical Damage
Dwelling Fire Special Form Policy (DP-3)
The DP-3 policy provides the most extensive coverage for investment landowners and landlords. In fact, this form covers a broad range of events. Instead of listing covered perils, the DP-3 policy covers all events except for those explicitly excluded on the form. Reimbursement for a claim with the DP-3 is similar to the DP-2, providing current replacement costs without depreciation. DP-3 coverage includes coverage for most risks. In fact, exclusions include:
- Ordinance or Law
- Nuclear Hazard
- Flood/water damage
- Earth Movement
- Power Failure
- Governmental Action
- Intentional Loss
At LoPriore, our motto is insurance that fits your lifestyle. That’s why we include additional choices to fit your unique needs. Thus, if the standard coverage supplied by your chosen policy is insufficient for your needs, you can purchase additional optional coverage to support your policy. Additional options include:
- Personal liability and medical coverage for tenants or visitors in the event they’re injured on the property
While a broad form policy usually provides adequate coverage, special circumstances may occur where you need extra protection. If you need rental insurance beyond the typical coverage, you can add an umbrella policy to your dwelling fire policy.