Types of Rental Property Insurance Florida Policies

May 29, 2020

When you rent out a home to others, you face the risk of accidents, theft, and even natural disasters destroying your property if you do not have the proper coverage. When searching for rental property insurance Florida, you may come across different types of policies known as forms. Different forms have different levels of coverage. Here’s an idea of what you can expect from each form:


DP-1 rental property insurance policies have the most basic coverage. DP-1 forms, which stands for Dwelling Policy, typically only cover named perils. This means that you will only be reimbursed for damage from perils that are specifically named in the form. You will often be reimbursed on an actual cash value basis, so your insurer will pay you for covered damage minus wear and tear, known as depreciation. 


DP-2 coverage provides broader coverage than DP-1, but it also typically provides coverage based on named perils. However, it usually covers a broader range of perils. DP-2 forms typically provide coverage on a replacement cost basis unlike DP-1 forms, so damage is covered at the price it would take to cover it at current market prices, without taking depreciation into account.


DP-3 forms provide the broadest coverage of the three types of rental property insurance. It provides extensive peril coverage, providing coverage for all perils besides those that are specifically excluded in the policy. The coverage is provided on a replacement cost basis. 

There are some endorsements that you can add to your rental property insurance for extra coverage. For example, vandalism coverage will usually cover deliberate physical damage to the home. 

Rental property insurance is an important shield against the risks you face when renting out your property to others. If you are considering a Florida rental property insurance policy, speak with HH Insurance to find the one that is right for you.