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Multiple carriers, one submission
Appetite for non owner occupied property varies sharply between carriers, so one declination is not the answer.
When a Homeowners Policy Is Not the Right Fit
Homeowners forms are written around an owner-occupied primary residence. Rent the property out, use it seasonally, or own a building a carrier will not write on an HO form, and a dwelling fire policy is often the better fit.
Dwelling fire policies generally cover one to four family dwellings, and depending on the carrier can be written for tenant-occupied or owner-occupied buildings. We place fire insurance for owners across the five boroughs, comparing carriers rather than selling one. See our full range of insurance services.
DP-1, DP-2, DP-3: The Form Shapes the Payout
| Form | How perils work | How claims are commonly settled |
|---|---|---|
| DP-1 Basic | Named perils. Loss must come from a listed peril. | Often actual cash value. Replacement cost sometimes available at extra cost. |
| DP-2 Broad | Named perils, on a longer list than DP-1. | Commonly replacement cost, though terms vary. |
| DP-3 Special | Open perils on the structure. Covered unless excluded. | Usually replacement cost. Broadest of the three standard forms. |
Settlement terms vary by carrier, form, and endorsement, so read the declarations rather than assuming. On an older building, the gap between actual cash value and replacement cost on a roof claim can run to tens of thousands of dollars.
What Dwelling Fire May Not Include
Liability
Personal liability is not part of every dwelling fire policy. Confirm whether yours includes it or whether it needs adding.
Tenant Belongings
The policy covers the building and, depending on form, property you own at the location. Your tenant's possessions are their own responsibility, which is why many leases require renters insurance.
Loss of Rents
If a covered loss makes the unit unrentable, fair rental value or loss of rents coverage responds to the income. It is not on every form by default.
Occupancy is a material underwriting fact. Vacancy narrows carrier appetite and can restrict perils, so describe the property accurately and tell us if the status changes mid-term.
When Standard Carriers Decline: The New York FAIR Plan
Building age, prior losses, and vacancy can push a property outside standard market appetite. New York has a backstop, worth understanding before you assume it solves the problem.
The New York Property Insurance Underwriting Association is the state's FAIR Plan, an association of the insurers writing fire insurance in New York under Article 54 of the Insurance Law.
Limits follow occupancy and construction: The published maximum for an occupied one to four family dwelling is $600,000 per location, with $250,000 for household personal property and additional living expense and $50,000 for rental value. A vacant dwelling is capped at $100,000.
Settlement is generally actual cash value: Replacement cost on the building is available only alongside a voluntary policy carrying an approved wraparound endorsement.
Liability, flood, and theft are not included: Those exposures must be covered elsewhere.
Broad Form carries a 2% hurricane deductible in the Bronx, Kings, Nassau, New York, Queens, Richmond, Suffolk, and Westchester counties, applying to losses in the twelve hours before and after a category 2 or higher hurricane makes landfall anywhere in New York State.
Vacant dwellings carry conditions: Boarding to NYPIUA specifications or a central station alarm, a 5% deductible, no vandalism coverage.
NYPIUA states that its coverage is limited and priced above the voluntary market, and that owners and their brokers should make every effort to place the risk with a voluntary insurer first. That is how we work it. Confirm limits and eligibility at application.
Dwelling Fire Insurance FAQs
Find answers before you get your quote.
A homeowners policy is written for an owner-occupied primary residence and bundles building, contents, liability, and living expenses. Dwelling fire is built around the structure and rental income, with contents and liability added according to the form and coverages you select.
It is worth carrying. Liability is not automatically part of every dwelling fire policy, so confirm whether yours includes it. Owners with several properties may also consider umbrella or excess liability, depending on their underlying policies and exposure.
No. Their possessions are their own responsibility. Requiring renters insurance in the lease is the usual fix, and it gives the tenant their own liability cover.
Sometimes, and it changes what is available. Vacancy narrows appetite, can restrict perils, and often brings security requirements and a higher deductible. Tell us at the quote stage.