PLEASE EXPLAIN WHAT ARE THE

by ERIKA » Wed Dec 17, 2008 10:38 pm
Posts: 1
Joined: 17 Dec 2008

PLEASE EXPLAIN WHAT ARE THE DIFFRENT OF THE HOME OWNER OR RENTALS DP3 AND ALL THE DP "S

Total Comments: 3

Posted: Thu Dec 18, 2008 09:08 am Post Subject:

The renter's insurance and the dwelling insurance differ on the coverage level. The renter's insurance coves only the personal belongings of the renter but doesn't offer coverage for the structure, dwelling insurance guarantees coverage for the residential structure and additional structures, like-detached garage, work shed etc.

The dwelling insurance grossly covers losses arising from fire, lightening and explosion. Therefore, its also known as the dwelling fire insurance.

Hope it helps.

Posted: Thu Dec 18, 2008 09:27 am Post Subject:

Well, I guess the most significant difference between the HO4 renter's insurance and Dwelling Fire insurance is that the first one is taken out by the renter and the second one is for the homeowner who's giving his property on rent.

There are mainly three types of DP insurance available in the market…

DP1 the basic form of dwelling policy, offers coverage against losses caused by fire. However, it may not cover loss of use and additional living expenses if you have to vacate your property after the loss.

DP2 or the broad coverage offers more comprehensive protection, covers losses from perils like- fire, lightning, debris removal, explosion, riots, freezing of plumbing, vandalism or civic commotion, windstorm or hail, burglary damages and such.

DP3 is the most complete form of dwelling coverage available and provides “all risk” coverage including liability/ medical payment coverage.

Hope it clarifies.

~Jeremy

Posted: Thu Dec 18, 2008 10:19 am Post Subject:

The DP3 also offers the 'loss of rental' coverage i.e. if the renter has to vacate the damaged rental property the 'loss of rental' coverage compensates the landlord for the loss of rental income.

DP3 offers the most exhaustive coverage amongst all the dwelling property insurance.

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