Landlord insurance written for how you own.

DP-1, DP-2, DP-3: what each form adds

Beyond the DP-1 versus DP-3 basics above, the detail behind each form number matters on a claim. The North Carolina Department of Insurance publishes a plain-English breakdown; wording varies by insurer and state, so read your own form.

• DP-1 (basic form). Fire, lightning and internal explosion. Windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke and volcanic eruption apply only when a premium for extended coverage is shown on the declarations. Vandalism or malicious mischief can be added as an option.
• DP-2 (broad form). Still named perils, but the list adds items such as vandalism and malicious mischief, burglary damage, weight of ice and snow, falling objects, freezing, and accidental discharge or overflow of water or steam. NC DOI says it typically settles on replacement cost and may include loss of rent, collapse and debris removal.
• DP-3 (special form). Open perils applies to the dwelling and other structures only. Personal property, such as appliances you supply, stays on named perils. Typical exclusions include neglect, mold, rust or rot, constant or repeated leakage or seepage of water or steam, earth movement such as earthquakes, and wear and tear.

In California, Insurance Code section 2070 requires fire policies to use the standard form fire policy in section 2071, or to provide fire coverage that, viewed in its entirety, is substantially equivalent to or more favorable to the insured. The standard form insures against fire, lightning and removal from endangered premises, to the extent of actual cash value but not more than the cost to repair or replace with material of like kind and quality.

One gap applies across the forms: the NC regulator notes that dwelling policies typically do not provide liability coverage. On any dwelling fire quote, I check whether premises liability is attached or written separately.

Vacant or unoccupied: reading the 60-day clause

In California, the 60-day vacancy limit is written into the standard form fire policy itself. Insurance Code section 2071 says that, unless otherwise provided in writing added to the policy, the insurer is not liable for loss occurring while a described building, "whether intended for occupancy by owner or tenant," is vacant or unoccupied beyond a period of 60 consecutive days.

• The clause names tenant buildings. A rental sitting empty between leases falls within it.
• It says "vacant or unoccupied." Your policy may define the two words differently, so read its definitions section rather than assuming either word means what it does in everyday speech.
• "Unless otherwise provided in writing added hereto." The fix the statute contemplates is a written change added to the policy, not a phone call.

Because section 2070 lets a policy differ from the standard form when its fire coverage as a whole is substantially equivalent or more favorable, your own policy's vacancy wording is the one to read. Forms can also limit specific perils: NC DOI's DP-2 summary lists accidental discharge or overflow of water or steam only if the building was not vacant for 60 days before the loss. A burst pipe in an empty unit can run for days unnoticed.

Day counts and definitions vary by state and form. If a turnover, renovation or sale will run past a few weeks, send me the dates and I'll check the form or look at vacant home coverage before the clock runs out.

Official sources

• California Department of Insurance: residential insurance guides
• NC Department of Insurance: Dwelling Policies
• IRMI: Fair Rental Value Coverage
• California Insurance Code section 2070 (standard form required)
• California Insurance Code section 2071 (standard form fire policy)
• California Civil Code section 1941.1 (untenantable dwellings)
• California Civil Code section 1942 (repair and deduct)
• California Civil Code section 1714 (ordinary care)
• California Civil Code section 1950.5 (security deposits)