Glossary

Dwelling fire policy

A property-only policy for a house, usually one that is rented, vacant or seasonal, sold without the liability package of a homeowners policy.

Also called: dwelling fire insurance, dwelling property policy, DP policy, fire policy

A dwelling fire policy insures a house against property loss without the bundled liability coverage of a homeowners policy. The name dates from when the basic coverage was fire and lightning. Today the ISO dwelling property program offers three forms, DP-1, DP-2 and DP-3, ranging from a short list of named perils to open-perils coverage on the building. Despite the name, the broader forms cover much more than fire.

These policies are written for properties that do not fit an owner-occupied HO policy: rental houses, vacant homes, seasonal cabins, houses under renovation, and homes an insurer will not write on an HO-3. FAIR plans in several states also write policies in this style. Coverage can include the dwelling, other structures, optional personal property, fair rental value and additional living expense.

Two gaps catch people. Personal liability and medical payments coverage are not included unless added by endorsement or bought separately, and the settlement basis, actual cash value or replacement cost, varies by form and insurer. If you rent the home to others, read landlord insurance: what a rental property policy covers and ask about liability. A dwelling policy is no substitute for an owner-occupant's homeowners policy, so confirm the form listed on your declarations page.

Last reviewed October 10, 2026

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Related terms

DP-1 (basic dwelling form) The basic dwelling form: it covers a short list of named perils to the building, typically at actual cash value, with no liability coverage built in. DP-2 (broad dwelling form) A broader named-perils dwelling form that adds falling objects, water discharge and freezing, and typically pays building losses at replacement cost. DP-3 (special dwelling form) The special dwelling form: open-perils coverage on the building and other structures, the closest match to an HO-3, common for rentals and second homes. Landlord policy Insurance for a home you own and rent to tenants, covering the building, lost rent and the owner's liability, but not the tenant's belongings. Vacant dwelling policy A specialty property policy for a house nobody lives in, written because owner-occupied forms restrict coverage once a home sits empty. FAIR plan A state pool, funded by the insurers doing business there, that sells basic property coverage to owners who cannot find it in the regular market.

Related guides

The California FAIR Plan explained What the California FAIR Plan covers and leaves out, how to pair it with a DIC policy, how it is funded, and how to move back to a regular insurer. Dwelling fire policies: DP-1, DP-2 and DP-3 Dwelling fire forms insure a rental, a vacant house or a home that can't get a homeowners policy. DP-1 is basic, DP-2 broad, DP-3 open perils. No liability. FAIR plans explained: the insurer of last resort for homes How FAIR plans and coastal wind pools work, who qualifies, what they cover and leave out, how they are funded, and what to ask before relying on one. HO-2 broad form vs HO-3: what changes in a claim The HO-2 insures the house against 16 named perils; the HO-3 against anything not excluded. Where the gap shows up, who must prove what, and lender limits. Insuring a home held in a trust or LLC A home moved into a revocable trust usually needs a trust endorsement or the trustee added. An LLC-owned home often cannot stay on a standard homeowners policy. Landlord insurance: what a rental property policy covers Landlord insurance covers a house you rent out, lost rent after a fire or leak, and your liability to tenants. What it leaves out and when you need it.

Related insurers

American Modern Insurance Group Munich Re-owned specialty insurer for manufactured homes and for older, vacant, seasonal and rental homes that standard carriers turn down, sold through agents. California FAIR Plan California's insurer of last resort, a pool of all licensed property insurers selling basic fire policies; 696,562 policies in force in June 2026. Co-operative Insurance Companies Member-owned Vermont insurer founded in 1915 for Grange farmers, writing home, mobile home, farm and auto coverage only in Vermont and New Hampshire. DB Insurance (U.S. Branch) U.S. branch of South Korea's DB Insurance, writing homeowners in California through the Aegis General program, plus Hawaii, New York, New Jersey and Guam. Donegal Insurance Group Marietta, Pennsylvania insurer founded in 1889, sold by independent agents; it has been shrinking its personal lines book since 2024 to protect margins. Foremost Insurance Farmers-owned specialist founded in 1952 for mobile homes; also writes landlord, vacant, seasonal and standard home policies via independent and Farmers agents.