Home & 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.

Last reviewed: May 2026 · Editorial methodology

Definition

The DP-3 mirrors the HO-3's coverage philosophy — open perils on the dwelling structure and named perils on personal property — but is issued for landlord-owned rental properties rather than owner-occupied homes. Because it uses an open-perils basis for the building, covered causes of loss are vastly broader than the DP-1 or DP-2, subject only to listed exclusions. Loss of rental income (fair rental value) is included when a covered peril makes the property temporarily unrentable, which is a critical protection for landlords. Claims on the dwelling are generally settled on a replacement-cost basis when the insured-to-value requirement (commonly 80%) is met. The DP-3 is often the preferred form for landlords with newer, well-maintained properties in standard markets. Adding a liability endorsement is still necessary, as bodily injury and property damage protection are not part of the base DP-3.

Where this term matters

Home Insurance →Landlord Insurance →Claims Help Center →

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-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.Open Perils (All Risk)A coverage approach where all causes of loss are covered unless explicitly excluded in the policy.Replacement Cost Value (RCV)The cost to replace lost property with new items of similar kind and quality — no depreciation.Loss of Use (ALE)Coverage D on home/renters — pays additional living expenses if your home becomes uninhabitable.

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

Get Insurance Updates

Occasional updates on insurance rules, coverage changes and new guides — and ways to save.

  • ✓State-specific insurance rule changes
  • ✓Seasonal enrollment deadline reminders
  • ✓Expert tips to lower your premiums
  • ✓New coverage options in your state

Free forever. Unsubscribe with one click. No spam, ever.

Important Disclaimer

This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.

← Back to Insurance Glossary (355 terms)