Dwelling Special (DP-3)

The right solution for seasonal and rental homes that need comprehensive coverage.

A customer may come to you with a rental or seasonal home that requires the most comprehensive protection available. Our DP-3 program offers true comprehensive protection for short-term and occasional rentals, it can even be used to cover temporary vacancies. We offer full replacement cost settlement, personal property coverage and loss of rent. DP-3 insurance will give landlords and property owners true peace of mind.


  • Rental or seasonal occupancy (owner occupancy available in some states, vacant occupancy available in AMsuite states)
  • Home up to 80 years of age (60 years in some states)
  • Roof up to 20 years of age
  • Above average condition or better
  • Single family structure up to a four-family
  • AMsuite only: Schedule up to 10 homes on one policy

Key coverages

  • Title held by Corporation, LLC, Estate or Trust
  • No limit on number of policies per customer
  • Short-term rentals
  • Prior Claims acceptable
  • Vacancy Permission Endorsement
  • AMsuite only: Water damage – 10% Coverage A with a $5,000 sublimit for mold and remediation

Coverage details

Comprehensive list of causes of loss

Replacement cost settlement – Losses are settled at the replacement cost, up to the policy limit. There is no depreciation deduction.

Loss of rent – Lost rental income is reimbursed if a covered peril causes sufficient damage that the tenant needs to move out and is no longer paying rent.

Vandalism – Physical damage or defacement of the home is covered

Additional coverage for:

  • reasonable expenses for emergency repairs
  • other structures on the property
  • debris removal
  • fire department service charge
  • collapse
  • water and mold
  • improvements and alterations
  • trees, shrubs, lawn

Short term rental permission – Rental terms less than three months, which are common in resort areas, can be accepted.

Occasional rental – A seasonal home can be rented to others for a short period of time when the owner is not using it.

Short term vacancy permission – A property between renters or undergoing renovations will be vacant for a few weeks or months. Adding the vacancy permission coverage keeps the property protected without the hassles of rewriting the policy.

Premises liability – Add protection for an injury occurring to someone while on the premises. The option does not cover a tenant’s actions.

Personal property – Add coverage for items such as furnishings, appliances, linens and the like, owned by the landlord and kept in their rental property, or owned by the seasonal home owner.

Limited burglary – If a forced entry leaves signs of visible damage (for example a broken window or jimmied door) we will cover the theft of personal items or permanently attached items such as a heat pump or even copper piping.

AMsuite only:
Water damage – increase from 10% to up to 100% Coverage A
Premises Liability (covers a property manager / can add landlord personal injury if a rental)
Service Line
And multitude of available discounts

Q: What occupancies are available in the American Modern DP-3 program?
A: Occupancies available are seasonal and rental with owner-occupied in selected states.
Q: What is the target market for this program?
A: The target market for this program is rental and seasonal properties that would normally qualify for coverage with a standard carrier. This program may also be used to accept individuals who may have difficulty in obtaining insurance with a standard carrier due to unfavorable liability exposure, animals or prior claims history.

Q: What perils are covered on this dwelling fire form?
A: The American Modern DP-3 program is written on special form. Coverage is included on the dwelling unless specifically excluded.

Q: What claims settlement options are available on the DP-3 form?
A: All claims are settled at replacement cost. Actual cash value is an optional settlement option in select states.

Q: How many photos are required for submission with an application?
A: None. American Modern orders inspections with the issuance of every dwelling application. These inspections include both photos and a site survey.

Q: What are the minimum value limits for the DP-3 program?
A: Minimum value limits for this program are $75,000.

Q: What are the maximum value limits for the DP-3 program?
A: Maximum value limits vary by state. Please refer to your state-specific program manual in the modernLINK eForms library.

Q: What protection classes are eligible in this program?
A: Dwellings in protection classes 1-10 are eligible.

Q: What is the maximum age for dwellings in this program?
A: The maximum is 80 years of age. Homes may be older if actual cash value is chosen as the settlement option. Some states allow all ages with a surcharge for older homes. Check your state-specific program guide.

Q: Is liability covered on this form? If so, how is it covered?
A: Premises liability is an optional coverage for Rental and Seasonal occupancies.

Q: Is personal property covered on this form?
A: Personal property coverage is available as an endorsement. Coverage amount up to 100% of the dwelling limit or $20,000, whichever is greater, is available.

Q: Is there any coverage provided for other structures on this form?
A: Yes! Coverage for other structures, such as sheds and detached garages, is included at up to 10% of the dwelling limit. Additional coverage may be purchased.

Q: What happens when the risk is unacceptable after the underwriter reviews the inspection?
A: If a risk is determined to be unacceptable, the underwriter will work with the agent, when possible, to recommend betterments or improvements to the property to increase its acceptability. If the risk is not acceptable, a direct notice of cancellation will be issued and coverage will cease according to the state-specific law.

Q: Are multiple family homes accepted in the DP-3 program?
A: Yes. American Modern will accept up to four-family dwellings.

Q: Are vandalism and malicious mischief (VMM) covered perils on the American Modern DP-3 policy?
A: Yes. This coverage is included.

Q: How are animals handled in this program?
A: Applicants with large, unusual, exotic or potentially vicious animals are only acceptable when the animal liability exclusion endorsement is attached to the policy, or when the policy is written without liability.

Q: Are there age restrictions on the roof in the DP-3 program?
A: Yes. The roof must be 20 years of age or newer.

Q: Are there any restrictions on types of wiring?
Knob and tube wiring is not acceptable. Additionally, the dwelling must have circuit breakers.

See Comparison Guide for more details on what’s new in AMsuite for Dwelling Special (DP-3). For complete information on AMsuite, visit the AMsuite Resource Center.

Program details may vary by state. For specifics, please log in to modernLINK and consult the program manual for specifics located under the eForms tab.