The quote you see in our Insurance Center is most likely a Dwelling, or Dwelling Fire, quote (condo quotes are different). This is the most common type of quote/policy used for tenant-occupied, residential dwellings of 1-4 units. The Dwelling quote that we generate is the beginning of a DP-3 (Special Form) policy, which offers a wide coverage range for landlord property insurance. It’s split up into several different coverage areas, which you can read as follows:
Dwelling (Coverage A) - this is based on the property value provided to us in the form initially, and is intended to mimic the cost to restore the dwelling to its previous condition and state in the event of a loss. On a DP-3 policy, Dwelling coverage is settled on a replacement cost basis.
Loss of Rents (AKA Fair Rental Value) (Coverage D) - this is coverage for the indirect loss of rental income in the event of a loss covered under your policy if the loss renders the property unfit for normal use. For example, if there is a fire in the dwelling that requires extensive repair and your tenant needs to move out in order to make the repairs, this coverage steps in to pay you the rental amount for the shortest time necessary while repairs are being made. This coverage amount is calculated at 10% of Dwelling coverage in the quote.
Medical Payments (to Others) - this is designed to cover necessary medical expenses that happen at the insured dwelling when bodily injury is caused by an accident. This does not apply to injuries sustained by the property owner listed as the insured on the policy or regular residents of their household (except residential employees), and is designed for those at the location with the permission of the insured. This coverage sometimes applies to injuries sustained off the location, so it’s a bit complex and definitely worth an in-depth conversation with your dedicated agent to be sure you understand the limits of the coverage.
Personal Property (Coverage C) - this applies to household and personal property that is owned by you and members of your family within the dwelling being insured. It can also apply to personal property of a guest while located in the dwelling being insured in some loss scenarios, but it does not cover a tenant or boarder’s property (that’s what Renter’s Insurance is designed to cover). This coverage amount is calculated at 50% of Dwelling coverage in the quote.
Premises Liability - this applies in cases where there is a lawsuit involving legal responsibility on the part of the landlord, and it is designed to protect the policyholder when they are allegedly responsible for accidental injury to someone or damage to someone’s property at the dwelling location. It’s important to understand that this only applies in cases of negligence (i.e., not intentional acts) that result in injury or property damage.
Any coverage that includes a deductible means that, should you have a loss to a part of the dwelling that is covered by that coverage category, you are responsible to pay the deductible amount before the insurance kicks in to cover up to the coverage limit in that loss scenario. For example, if you have a $2,500 deductible on your Dwelling coverage and there is a fire in the dwelling that is covered by your policy, you are responsible for the first $2,500 toward recovering from the loss (e.g., repairing or replacing the fire-damaged part of the dwelling) before insurance steps in to cover the remaining cost (up to the limit of coverage listed).
There may be other coverages included in your initial quote for certain areas of the US. This is just a starting point for your quote, and connecting to an agent is the next step to add and adjust coverage amounts, change deductibles, and customize the quote under the guidance of our experts to ensure that you are properly protected in balance with the best premium possible.