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.

Where this term matters

Home Insurance →Landlord Insurance →/states →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

DP-1 (Dwelling Fire Basic Form)The most basic dwelling fire policy, covering only fire, lightning, and internal explosion on a landlord or non-owner-occupied property.DP-3 (Dwelling Fire Special Form)The broadest dwelling policy form, providing open-perils coverage on the structure and named-perils coverage on personal property.Replacement Cost Value (RCV)The cost to replace lost property with new items of similar kind and quality — no depreciation.Named PerilsA coverage approach where only the specific causes of loss listed in the policy are covered.Dwelling CoverageCoverage A on a homeowners policy — pays to repair or rebuild your home's physical structure.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

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 June 2026

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