Landlord Insurance Sacramento; Types of rental property insurance policies

As you shop for rental property insurance you’ll notice that there are various policies to choose from. Landlord insurance is very similar to homeowners insurance and will also have different levels of coverage. Below we go over some of the different types of forms you may run into.

DP-1 Landlord Insurance: 

Landlord insurance is usually in a category for a dwelling policy also known as DP. The DP-1 is typically the lowest cost form of coverage that comes with very basic coverage. Most DP-1 forms will only cover you for named perils. Which means that if the peril that damages the home is not named within the policy there is a veery good chance your insurance provider will not cover you. DP-1 policies will reimburse you on an actual cash basis. This means that your landlord insurance provider will give you coverage for the damage but minus the wear and tear or depreciation. 

DP-2 Landlord Insurance: 

A DP-2 will provider a little broader coverage than a DP-1 form. Much like the DP-1 a DP-2 policy will be based of named perils. Although, your DP-2 coverage will go beyond and extend to more perils than a DP-1. As an example with your DP-2 policy may offer coverage for theft but in the DP-1 you will not have that coverage available. A DP-2 form will also improve the DP-1 coverage by allowing coverage on a replacement cost basis. This means that damage will be covered at the cost of the current market prices. This also comes without depreciation. 

DP-3 Landlord Insurance: 

A DP-3 policy is going to be the most expensive form of the three. It will provide you with the broadest coverage range. The DP-3 form is also going to provide extensive peril coverage which will protect against all perils except for those that are excluded in the policy. Much like the DP-2 form the coverage is based on a replacement cost basis. 

Optional additions to your rental property insurance

Each landlord insurance provider will have different coverage so what may be standard for one insurance company may not be applicable for another. It could even be unavailable altogether. In this article we will show you a few common examples of endorsements that you may be able to add to your landlord insurance policy. Please keep in mind it’s always a good idea to shop around for the best policy for your needs.

The best way to shop multiple providers is to speak with an independent landlord insurance agency like Eugene C Yates Insurance Agency. Our agents have access to thew very best rental property insurance providers and they have firsthand knowledge of the best landlord insurance discounts available. 

Optional rental property insurance endorsements

• Vandalism coverage: This usually covers deliberate physical damage to the home.

• Ordinance or law coverage: This covers a loss of value or costs associated with enforcing local laws surrounding the repair of property caused by an insured loss.

How much does rental property insurance cost?

Landlord insurance rates are typically around 25% higher than a standard homeowners insurance policy. The average cost of homeowners insurance in the United States is roughly $1400 annually, which would make rental property insurance around $1800 per year. There are more risks that will be covered under a landlord insurance policy so as you would expect the premiums are a little more expensive. 

Landlord Insurance Quote

If you would like a custom rental property insurance quote or you have a few more questions regarding landlord insurance coverage, please feel free to give us a call today at 916 313 6100.