What does DP3 not cover?

What DP3 Landlord Insurance Doesn’t Cover

If you’re a landlord relying on DP3 insurance—the most comprehensive form of dwelling property coverage—it’s important to know what’s not included. While DP3 offers broad protection for your rental property, it won’t cover everything.

DP3 Landlord Insurance typically protects against common perils like fire, windstorms, hail, vandalism, and certain types of accidental water damage—such as a burst pipe. Theft may also be covered, but usually only if you've added a specific endorsement. However, several key risks are excluded from standard policies.

One of the biggest exclusions is flooding. Even a severe rainstorm that inundates your property won’t be covered unless you have a separate flood insurance policy, often required in high-risk zones. Similarly, earthquakes are not included. If you’re in a seismically active area, you’ll need to purchase additional coverage.

Other common exclusions include wear and tear, which is considered routine maintenance and not an insurable event. Mold is another grey area—unless specifically endorsed, most policies won’t pay for mold remediation. This can be a costly oversight, especially in older buildings or properties in humid climates.

Damage from pests like rodents or insects also falls outside the scope of DP3 coverage. This means if termites or mice compromise the structure, repairs come out of your pocket. And of course, any damage resulting from intentional acts by the landlord or tenant is never covered—insurance protects against accidents, not deliberate destruction.

Understanding these exclusions helps you make smarter decisions about supplemental coverage. While DP3 is a strong foundation, it’s not foolproof. Review your policy carefully and consider endorsements or additional policies where needed to keep your investment truly protected.