INSURING YOUR RENTAL PROPERTY Dwelling Property Insurance with Pioneer State Mutual

Who should buy a Dwelling Property policy?

Dwelling Property policies are for those who own a property which is rented to a tenant. It covers the structure and some contents as well as your liability as a landlord or propery owner.

What is covered in my Dwelling Property Policy?

Your Dwelling Property policy offers coverage for properties that are occupied by the owner or rented to someone other than the owner. It also can cover landlord contents such as appliances and equipment for covered perils.

There are three levels to select from for a Dwelling Property policy. Each of the levels adds coverage, building upon the level below:

Level 1 (DP-1)

Covered Perils:

  • Fire
  • Lightning
  • Internal Explosion

NOTE: A DP-1 policy is Actual Cash Value coverage. See notes on Replacement Cost vs. Actual Cash Value ACV)

Level 2 (DP-2)

Covered Perils:

Everything included in a DP-1, plus:

  • Windstorm or Hail*
  • Explosion*
  • Riot/Civil Commotion*
  • Aircraft and Vehicles*
  • Smoke*
  • Volcanic Eruption*
  • Vandalism and Malicious Mischief* 
  • Damage by Burglars
  • Falling Objects
  • Weight of Ice, Snow or Sleet
  • Accidental Discharge of Water/Steam
  • Sudden Cracking of Steam/Hot Water System
  • Freezing
  • Sudden, Accidental Damage (Artificial Current)

* This peril can be added to a DP-1.

Level 3 (DP-3)

Covered Perils: Everything included in a DP-1 & a DP-2, and much more. For more details, discuss with your agent.

Optional Endorsements

  • Water Back-Up and Sump Overflow
  • Ordinance or Law Coverage (DP-1)
  • Increased Ordinance or Law Coverage (DP-2; DP-3)
  • Equipment Breakdown (DP-3)
  • Buried Utility Lines Coverage (DP-3)
  • Fire Department Service Charge Increase
  • Special Coverage
  • Condominium Unit-Owners Coverage
  • Landlord Liability

Available Discounts

  • Burglar Alarms
  • Fire/Smoke Alarm
  • Sprinkler Systems
  • Multi-Policy Discount
Your deductible is the amount you are responsible for in the event of a loss to your property. Deductibles do not apply to liability claims. The deductible is subtracted from the total value of your loss to arrive at a net paid amount to you. We only pay losses which exceed your deductible. Your agent can help determine what deductible to select.

Replacement Cost vs Actual Cash Value (ACV)

If the time comes to turn in a claim for damaged property, the amount paid to you will depend on which type of policy you have (DP-1 policies pay Actual Cash Value, DP-2 & DP-3 policies pay Replacement Cost).

The difference boils down to the idea of depreciation: if an item or building is brand new, it is worth more than an older one. A Replacement Cost policy will pay for a new (comparable) item/building, whereas an Actual Cash Value policy will pay for the value of the older item/building, and you may decide whether to buy another item of equal value, or to pay the difference and buy a new one.

Did you know?

A DP-3 is what we call an “open peril” policy. This means there is coverage for a loss, unless the policy specifically excludes a cause of loss. Open Peril policies generally are more expensive, as they cover more types of loss.

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This brochure is intended to be a broad summary of the insurance coverages provided by a Dwelling Property policy. The information here is subject to policy terms and exclusions, and does not replace your policy language. Read your full policy carefully and ask your Independent Insurance Agent if you have specific questions.