DP2 Insurance Policy: What It Is and What It Covers

In the world of property investment, it is essential to safeguard your assets and other valuables. The DP2 insurance policy offers full-bodied benefits, specifically designed to protect the policyholder’s investment property against unforeseen risks.

Its comprehensive policy offers coverage for natural disasters and tenant-related damages that extends beyond the basic coverage of previous dwelling policies, ultimately providing policyholders with financial security and peace of mind.

In today’s article, we will be exploring the intricacies of the DP2 insurance policy, its key features, what it covers and doesn’t, and why we consider this insurance policy a must-have for any property owner who seeks to protect their assets and mitigate future risk.

What is DP2 Insurance Policy?

DP2 insurance policy, also known as dwelling fire form 2 policy or broad form, is a type of insurance that offers a comprehensive policy that provides protection for the valuables and assets of policyholders.

However, the risk and perils DP2 insurance covers are strictly based on the perils specified by the policy; risks that are not explicitly stated in the policy will not be covered. Notwithstanding, the DP2 insurance policy offers broader coverage than the DP1 insurance policy.

A DP2 insurance policy is also a replacement cost value (RCV) type of coverage, which automatically means that policyholders are entitled to receive the specific amount needed to repair damages to the property during a claim. It will provide financial security that helps ease the financial strain of having to foot part of the bills from your personal account.

What Does It Cover?

DP2 insurance offers coverage for a total of 18 perils, which include:

  • Fires and lightning.
  • Hailstorms and windstorms.
  • Smoke.
  • Internal and external explosions.
  • Riots or civil commotions.
  • Burglary.
  • Vandalism.
  • Accidental or sudden power surges.
  • Vehicle damages.
  • Aircraft damages.
  • Accidental or water damage.
  • Freezing pipes.
  • Volcanic eruptions.
  • Falling objects.
  • Snow.
  • Structure collapse.
  • Glass breakage.
  • Accidental or unexpected cracking, bulging, or tearing.

In addition to these aforementioned perils, dwelling fire form 2 insurance policy also offers fair rental value coverage to policyholders whose property is uninhabitable as a result of any of the above perils. If you also lose your income along the line, your insurance provider will reimburse you the fair value of the rent up to the qualifying limit on your insurance policy.

What It Does Not Cover

There are limitations to what DP2 insurance covers. Although it provides more coverage than DP-1 insurance, there are still some exclusions attached to DP-2 insurance. They include the following:

  • Earth movement.
  • Floods and water damage.
  • Power failure.
  • Neglect
  • War and nuclear hazards.
  • Ordinances or law-intentional acts.

Places where you can Find DP2 Insurance Policy

Individuals and property owners who wish to enjoy the benefits attached to DP-2 insurance can explore the following options:


This is an insurance policy designed to meet the needs of landlords and real estate investors. This is an insurance provider that offers a streamlined process for purchasing the DP-2 insurance policy, offering immediate quotes in all 50 states.

Insurance agent

You can also purchase a DP2 insurance policy from your existing insurance agent or company. This is one of the best places to get DP2; it saves you the stress of having to go through rigorous research for insurance companies that offer DP2.

Social media

You can also access a network of communities on social media that offer DP2 insurance policies. You can also visit property exhibitions and search for organizations that are willing to provide this insurance policy.


What does DP2 stand for in the insurance industry?

DP2 simply means ‘Dwelling Property 2’ and it is a specific type of insurance policy that offers coverage for assets and properties.

What are the differences between DP1 and DP2 insurance policies?

DP1 insurance policy offers coverage for certain perils as stated in the policy. On the other hand, DP2 policy provides broad and better coverage for a vast array of perils, as highlighted in this article.

Are there any discounts available for multiple properties under a DP2 policy?

Some insurance providers may offer discounts for insuring numerous properties under a single DP2 insurance policy. This is also known as a landlord or multi-property insurance policy. You can as well seek inquiries from your insurance provider to know if there are discounts attached to their insurance policy.

Can I switch from a DP1 to a DP2 policy?

Yes, you can, provided your insurance provider permits you to upgrade from a DP1 to a DP2 insurance policy. Switching may attract extra costs, so it is important to ask your insurance provider about the procedures for upgrading from a DP1 to a DP2 insurance policy.

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