Tuesday, June 27, 2017

What's the Difference between DP3 vs H03 policy?


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I have recently had the question come to me:
What is teh difference between a DP# and a H03 policy?

The Ole DP3 vs H03 debate:

Below is some info to help navigate these waters.

Homeowners vs. Dwelling Policy Comparison Chart

Homeowners Policy (HO-3)
 Dwelling & Fire Policy (DP-3)
The HO-3 has been the most common homeowner’s policy for 60 years and is adequate for the majority of homeowners and their insurance needs.   For owners who live there.
The DP-3 is for rental properties that the owner does not occupy.  It covers the basics of the house (dwelling) other coverages are not automatic: speak to us about customizing protection to your needs.
Coverage A
Dwelling. The amount of money your policy will pay to rebuild your home if  it is destroyed.
Dwelling. The amount of money your policy will pay to rebuild your home if it is destroyed.
Coverage B
Other Structures. 10% of coverage  A is automatically included. The amount your policy will pay to rebuild structures such as sheds & garages.
Other Structures. Not automatic. Have a garage? Other outbuilding? Add optionally.
Coverage C
Personal Property. The amount you  have to replace all of your “stuff” in the event of a loss.
Personal Property Generally not included. Tenants should have their own insurance.  Landlords can optionally include personal property for appliances if furnished.
Coverage D
Loss of Use.  The funds you will have to   rent another place while your damaged home is fixed or rebuilt.
Loss of Use or Fair Rental Value. The funds you will have for the tenants to rent another place or stay at a hotel while your damaged house is fixed or rebuilt.
Replacement Cost. Ensures you get the full price to fix or replace any lost personal items in a total loss.
Replacement Cost. On personal property, generally not included.
Coverage E
Personal Liability. In the event that you become a defendant in a lawsuit, the insurance company will provide up to $1 million in coverage.
Personal Liability. In the event that you become a defendant in a lawsuit, this can provide up to $1 million in protection. Always important for rental properties. Not all DP-3 policies offer Personal Liability and we may have to place a separate Liability policy for this protection. 
Medical Payments to Others. If someone falls and is injured on your property, the medical payments will be covered up to this amount.
NOTE: If you own a primary home and have a homeowner’s policy, you may extend the liability to cover the rental (multi-family) property.
Optional Coverages and Endorsements
There are many additional coverage items you can add to your HO-3 such as sewer backup, personal jewelry, identity fraud coverage, business pursuits, etc. 
Also available to meet your unique needs.  Talk to an expert at Gordon to customize protection for your individual needs.



Respectfully,



Michael Fillers, CPIA, NFIP
Morris Insurance Agency, LLC
3032 Dauphin Square Connector
Mobile, AL 36607
D.251-473-5119/F.251-473-6301/C.251-753-8011

How I met JESUS in the flesh and HE saved me:


Matt 24:46-47-"Blessed is he whom his master will find at work when he arrives. Truly I tell you, he will put that one in charge of all his possessions."

sources: http://www.agordon.com/dp3vho3

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