What is covered under a DP2 policy?

What Does a DP2 Home Insurance Policy Cover?

When shopping for home insurance, especially for rental properties, vacation homes, or other non-owner-occupied dwellings, you might come across a DP2 policy—also known as a Dwelling Fire 2 policy. It’s a step up from the more basic DP1, offering broader protection for the physical structure of your property.

A DP2 policy primarily covers the main building—like your house—as well as detached structures such as garages, sheds, or guest houses. Unlike broader homeowners policies, it focuses on the building itself rather than personal belongings or liability. This means if a covered peril—like fire, windstorm, or vandalism—damages your roof or walls, you're likely protected. But if your furniture, electronics, or other personal items are stolen or destroyed, that’s typically not included. Likewise, if someone gets injured on your property and decides to sue, a standard DP2 won’t cover legal fees or medical costs. That said, some insurers do offer optional endorsements to add personal property protection or liability coverage—for an additional cost. This flexibility makes DP2 a popular choice for landlords or those managing seasonal rentals who want more than the bare minimum but don’t need a full homeowners policy. It’s also worth noting that DP2 policies are "named peril" policies, meaning they only cover risks explicitly listed in the contract. So while the protection is more comprehensive than a DP1, it’s not open-all. You won’t be covered for every possible scenario—just the ones spelled out in the policy. If you're considering a DP2, it’s smart to talk with your insurer about adding coverage for personal belongings or liability. For many property owners, that small upgrade brings peace of mind without significantly raising premiums.