Dwelling Fire (DP-3) Insurance in Colorado
The DP-3 is the workhorse policy for single rental properties: open-peril coverage on the structure, loss of rents, and landlord liability. If you own one or two rentals, this is probably the right product, and we quote it across our carrier network.
What a DP-3 covers
DP-3 is the broadest of the dwelling fire forms: special-form (open peril) coverage on the dwelling, meaning everything is covered except what the policy specifically excludes.
- Dwelling at replacement cost, with the same Colorado wind/hail deductible attention any roof needs.
- Other structures: garages, sheds, and fences.
- Loss of rents so income continues while a covered loss is repaired.
- Premises liability for tenant and guest injuries, with limits that should match your overall asset picture.
- Landlord contents: appliances and furnishings you provide, on an actual cash value or replacement basis.
- Optional endorsements: water backup, service line, ordinance or law, and vandalism considerations for vacancy periods.
DP-3 vs DP-1
The DP-1 is a named-peril, often ACV product that prices cheap and pays accordingly. For most occupied rentals the DP-3's broader form and replacement cost basis is worth the difference. We will show you both numbers.
One rental vs a portfolio
DP-3s fit owners of one to a few doors. Past that, scheduled portfolio programs usually win on price and administration. We will tell you when you have crossed the line.
Occupancy honesty
Vacant, under renovation, or short-term rental use each need different coverage than a standard tenant occupancy. Claims get denied over occupancy mismatches more than almost anything else. Tell us how the property actually runs.
DP-3 FAQs
Why not just keep homeowners insurance on my rental?
Homeowners policies restrict or exclude coverage once a tenant moves in. A denied claim is the usual way owners discover this. Converting to a DP-3 is quick and often costs about the same.
Does a DP-3 cover my tenant's belongings?
No. Tenants need their own renters policy, and your lease should require it. It protects them and reduces friction with your policy after a loss.
What liability limit should I carry?
At least enough to protect your equity and income, and for many landlords an umbrella over the DP-3 is the cheap answer. See our umbrella page for how that stacks.
Can I use a DP-3 for a short-term rental?
Generally no; most DP-3 forms contemplate longer tenancies, and STR activity needs occupancy-correct coverage. See our Airbnb and short-term rental page for the right product.
Does a DP-3 cover damage caused by my tenant?
Accidental damage from covered perils yes; wear, neglect, and some intentional damage scenarios vary by form. Security deposits, tenant screening, and requiring renters insurance remain your first line.
How long does loss of rents pay after a fire?
Up to the stated limit and time horizon in the policy, while the home is uninhabitable from a covered loss. We size it to realistic Colorado repair timelines rather than the default.
If I move back into my rental, do I need to change the policy?
Yes, back to a homeowners form. Same when the property's use changes in any direction: occupancy drives the form, and a mismatch threatens every other coverage in it.
Get your DP-3 quote
Address, roof age, and tenant situation. Same-day quotes on most single rentals.