We often hear, “Just give me basic.” We can do that, but once we talk about the things that are not covered, basic usually does not sound so good. The Dwelling Policy (DP1) coverage form provides basic coverage to older homes, rental dwellings and mobile homes that do not qualify for the comprehensive Homeowner Policy (HO3). While basic dwelling coverage can cost significantly less than comprehensive homeowner coverage, there are significant coverage sacrifices that you should be aware of.
Water damage from burst pipes is not covered
Losses related to theft are not covered.
Claims payments are reduced by depreciation
Liability protection is not automatic.