Home & Property
DP-2 (Dwelling Fire Broad Form)
A mid-tier dwelling policy covering a broader list of named perils than DP-1 and settling most claims on a replacement-cost basis.
Last reviewed: May 2026 · Editorial methodology
Definition
The DP-2 expands the DP-1's three-peril protection to approximately 18 named perils, adding coverage for windstorm, hail, falling objects, weight of ice/snow, accidental discharge of water, and others. Dwelling losses are typically paid on a replacement-cost basis when the home is insured to at least 80% of its replacement value, unlike the DP-1's ACV-only settlement. Personal property of the landlord (not tenant belongings) can be added via endorsement. Like all dwelling policies, the DP-2 does not automatically include personal liability, which must be scheduled separately or covered under a personal umbrella policy. DP-2 policies are commonly used for well-maintained rental homes that still don't qualify for the preferred HO-3 market. Tenants in a DP-2-insured property remain unprotected and need their own HO-4 renters policy.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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