There are many important factors to consider when investing in property damage insurance for your personal property. When it comes to choosing the right policy, what matters most is how you use the property in question. In other words, the state of the property’s occupancy by the policyholder is a crucial factor when determining which homeowner’s policy is the best to invest in.
One of the most important choices to make when purchasing property insurance is that between an HO3 policy and a DP3 policy. While both these policies provide a sufficient amount of coverage, they affect both the rate of your premiums, but more importantly, what is covered under the policy.
Therefore, this article will serve to distinguish between HO3 and DP3 policies, outlining what is covered in each so that you can choose the right policy for your personal property and receive the coverage that you are entitled to in the event of property damage or loss.
What is an HO3 policy?
HO3 policies are also known as standard homeowner’s policies. If you are wondering when you should opt for an HO3 policy, ask yourself the following simple questions.
- Are you the owner of the property in question?
- Do you reside in the property in question?
If your answer to both questions is in the affirmative then an HO3 policy is most probably right for you. An HO3 policy covers the structure, contents, personal property and occupant liability in the event of any unforeseen damage or loss. The HO3 policy typically includes coverage for water damage, mold damage, storm and hurricane damage, fire damage, structural damage, and may include damage due to environmental disaster.
Depending on the nature of your HO3 policy, as well as your specific needs, the amount of coverage for each of these property damage areas can vary.
What is a DP3 Policy?
A DP3 policy, also known as a Dwelling Fire Policy, differs from an HO3 policy in one essential way. This is the question of occupancy. If you own a second home and t reside there on a limited basis then a DP3 policy is likely right for you. A DP3 also applies to property that you own as investment – like multi – family property that you rent out.
A DP3 policy covers structural damage, rental coverage, and personal liability is also included in some DP3 policies. But it differs from a HO3 policy in that a DP3 policy offers limited or no coverage for the’ personal property, like furniture. However, most insurance companies offer optional riders that you can add on to include personal property. And as for renters, it is a good idea to insist your renters invest in renter’s insurance to cover their personal property (HO4 policy). A typical homeowners HO3 insurance policy won’t provide the same protection as DP3 will for rental property.
To sum up: It is important to review your DP3 policy to determine its coverage. While DP3 policies are very similar to HO3s, However DP3 is a more appropriate and cost-effective policy to purchase for homeowners not living at that property.
Final Words
If you have sustained damage to your personal property and are due to receive coverage under either an HO3 or DP3 policy, the highly experienced and aggressive attorneys at Consumer Law Office can review your claim and ensure that you receive the coverage you are entitled to in your policy.
It is not uncommon for insurance companies to take advantage of their policyholders’ lack of knowledge about different policies and coverages. For this reason, it is always best to have your damage claim reviewed by a Florida Property Damage Attorney at the Consumer Law Office. The Florida Property Damage Attorneys at Consumer Law Office can take the time to review your insurance policy and property damage claim for you and interpret them to understand the full measure of damages available to you.
Consumer law Office is a client-centric law firm that is committed to delivering excellent customer service. Our Property Damage Attorneys will fight aggressively on behalf of our residential and commercial policyholders, contractors, mitigation companies, and public adjusters, to produce maximum recovery results from insurance companies through the firm’s deep understanding of insurance law, cutting edge technology, and proactive approach to litigation.
For more information, visit https://consumerlawoffice.com/ or Contact us by phone at: 305-940-0924
