Rental property insurance for landlords

Most people understand property insurance by comparing it to the policy they have for their home, which offers very wide coverage. However, a rental policy does not qualify for a true homeowners policy. Most agents will direct you to a rental property policy.

American Modern gives landlords two options to insure rental property. The insurance terms for rental property coverage are DP-3 [?]
DP-3
DP stands for Dwelling Property, a class of coverage for housing insurance created by the Insurance Standards Organization.The number is a designation for one of several standard DP packages.DP-3 offers comprehensive coverage for rental and seasonal occupancy classes.The coverage is similar to a standard homeowners policy. and DP-1 [?]
DP-1
DP stands for Dwelling Property, a class of coverage for housing insurance created by the Insurance Standards Organization. The number is a designation for one of several standard DP packages.DP-1 offers named peril coverage for owner, rental, seasonal, and vacant occupancy classes. They each have different requirements for the property's physical description, and offer different ranges of coverage.

Other rental property insurance options

• Landlords with rental mobile homes will want to look at our program just for mobile homes.
• Real estate investors with ten or more rental properties can simplify insurance management by combining all of the holdings onto one policy form, with one renewal date and one payment schedule. Learn how to insure multiple rental properties.
• If your rental property is a residence you live in part-time and rent out for short periods, the better program for you is seasonal home insurance.

What's included with DP-3 coverage?

Comprehensive protection

Your policy covers any cause of loss (fire, lighting, wind, hail, explosion, burst water pipes, and so on) unless that cause is specifically excluded in the policy documents. This kind of coverage is sometimes referred to as "special form" coverage.

Replacement cost loss settlement

For a total or partial loss, we settle at the replacement cost of the loss, up to the policy limit. There is no depreciation deduction. There are other options in some states.

Loss of rent

If a covered peril causes sufficient damage that your renter needs to move out, and is no longer paying rent, we cover that lost income.

What's included with DP-1 coverage?

Named peril protection

Your policy covers those causes of loss listed by name in your policy documents (fire, lighting, wind, hail, explosion, and others). It covers the essentials, but not everything. This kind of coverage is sometimes referred to as "basic form" coverage.

Actual cash value loss settlement

For a total or partial loss, we settle at the actual cash value (ACV) of the loss, which takes depreciation into account when settling your claim. If you want a bit more coverage, in many states we offer upgrades to full repair cost coverage.

Loss of rent

If a covered peril causes sufficient damage that your renter needs to move out, and is no longer paying rent, we will cover that lost income.

Expand the coverage for your rental property with these options

Short term rental permission

In many resort areas rental terms are less than three months. This option adds that flexibility to your insurance.

Short term vacancy permission

If you are between renters, or are doing some renovations, your property will be vacant for a few weeks or months. Adding the vacancy permission coverage keeps your property protected without the hassles of rewriting the policy.

Premises liability

This coverage protects the landlord's liability if an injury occurs to someone while on the premises. It does not cover the actions of the landlord when away from the property, or the renter's actions.

Personal property

If you as a landlord equip the property with furnishings, appliances, linens and the like, our landlord policy lets you add coverage for these kinds of personal property.

Breakdown protection

We pay for the repair or replacement of your major appliances, HVAC and electronics if they just stop working because of a mechanical or electrical failure. That can save you a lot of money for an unexpected repair or replacement. You pay just the deductible.

Limited burglary

You are covered for theft of personal items, plus permanently attached items such as a heat pump, appliances or even copper piping if a forced entry leaves signs of visible damage, such as a broken window.

Vandalism

If there is no theft, just physical damage or defacement, the loss is considered to be vandalism. This coverage is included with the DP-3 rental program, but optional for DP-1.

Option 1 – start EZPay to automate your payments

Many customers want the convenience of monthly automated bill payments. With EZPay, a withdrawal is made from a bank account you specify, or charged to your credit card. We let you pick the date of the month for the payment (1 to 28). Once EZPay begins, we will stop mailing invoices.

Option 2 – pay after we send you a bill

You either can pay in full at the time you start or renew the policy, or in many states we offer a 4-Pay plan – a 25 percent down payment on your policy followed by three installments. A service fee applies to each installment. Pay by personal check, credit card, or bank account transfer.

Some states place limits on the payment plan schedules we can offer or the service fee. To confirm, check with your agent or call Customer Care at 800-543-2644.