Vacant (DP – 1)
Provide your customers with a flexible solution that offers essential coverage on rental and seasonal homes.
You may come across a home that doesn’t need – or is not eligible for – the coverage of a full homeowners’ policy. That’s where our DP-1 program can be a big help to your customers. Often referred to as a dwelling or fire insurance policy, DP-1 gives your customers the flexibility to get essential coverage for homes that are any age, any occupancy, in fair or better condition, even homes that are up to four-family construction can be eligible. Liability protection and many other coverages can be added as options.
- No restriction on the home’s age
- Fair or better condition
- Standalone, non-residential structures
- Up to four-family construction
- AMsuite only: Schedule up to 10 homes on one policy
Covers the causes of loss listed by name in the policy documents.
Many states offer upgrades to full repair cost coverage or replacement cost coverage.
We offer policy terms of three, six or twelve months for a vacant home going through a renovation, between tenants or being held for sale.
Structures such as a pole barn, boat house or gazebo can be written using the DP-1 seasonal program.
Reasonable expenses for emergency repairs such as covering a roof after a storm, other structures on the property, debris removal and fire department service charge.
- Loss of rent – Lost rental income is reimbursed if a covered peril causes sufficient damage that the tenant needs to move out and is no longer paying rent.
- Additional coverage
- Reasonable expenses for emergency repairs such as covering a roof after a storm
- Other structures on the property.
- Short-term rental permission – Rental terms less than three months, which are common in resort areas, can be accepted.
- Occasional rental – With this option a seasonal home can be rented to others for a short period of time when not in use.
- Short-term vacancy permission – A property between renters or undergoing renovations will be vacant for a few weeks or months. Adding the vacancy permission coverage keeps the property protected without the hassles of rewriting the policy.
- Limited burglary – If a forced entry leaves signs of visible damage (for example a broken window or jimmied door) we will cover the theft of personal items or permanently attached items such as a heat pump or even copper piping.
- Breakdown protection – Widen the policy’s scope to include the repair or replacement of major appliances, HVAC and electronics due to mechanical or electrical failure.
Theft with resulting vandalism
And multitude of available discounts
Q: My client owns an investment property that has been vacant for three months and his current insurance carrier is cancelling his policy. Will American Modern insure this home?
A: A qualifying home can be insured in the DP-1 Vacant program where most states offer a three, six, or twelve month term.
Q: I have an insured that is selling their home and has already moved into their new home. Since their home is no longer occupied, how do I insure it?
A: A home that is unoccupied and on the market can be insured in the DP-1 Vacant program.
Q: My policyholders have a DP-1 rental policy with American Modern. The tenants have moved out. While they seek new tenants, do I have to cancel the current policy and write the home in the DP-1 Vacant program?
A: No. American Modern’s Vacancy Permission endorsement allows rental dwellings to be temporarily vacant. Once the home has new tenants, the endorsement can be removed.
Q: Will a DP-1 Vacant policy properly insure a furnished, but seasonally vacant, home in New York that is owned by a family that lives in Illinois?
A: A secondary residence that is seasonally occupied should be written as a DP-1 or DP-3 seasonal risk, not as a vacant risk.
Q: One of my customers is an investor who buys multiple properties in the name of her company. After purchasing the homes, she renovates and re-sells them. In which program should I insure these homes and for what value?
A: Vacant homes under renovation should be placed in the DP-1 Vacant program. This program offers a Builder’s Risk endorsement that is intended for vacant homes that are undergoing major renovations. In most instances, the dwelling should be insured for the purchase price plus renovation costs. However, there are limits on the amount of renovation coverage that can be offered. This amount should be discussed with and approved by the state underwriter.
Q: If a home is inherited, but it is uncertain whether it will be leased or sold, how should it be insured?
A: An inherited home that is vacant should be insured in the DP-1 Vacant program. However, an inherited home occupied by tenants can be insured either in the DP-1 or DP-3 rental program. Our underwriters answer the most frequently asked questions. Vacant Dwelling FAQs
Q: How do I insure a second home that is not occupied, leased to others, or soon to be sold?
A: Homes that are vacant indefinitely are not eligible.
Q: Will a home that is for sale (windows boarded for protection) qualify for the DP-1 Vacant program?
A: Possibly. Vacant dwellings that are for sale or undergoing renovations may have temporarily boarded windows. However, the home and premise must be properly maintained.
Q: I need to place coverage on an unoccupied home that will be rented out at some point. Do I write this in the vacant or rental program?
A: Newly purchased investment dwellings that are unoccupied, but do not have a lease agreement taking effect within 30 days of the purchase date, should be placed in the DP-1 Vacant program.
Program details vary by state. For specifics, please log in to modernLINK and consult the program manual for specifics located under the eForms tab.