Any Reason to Not Write Dp3 Vs Ho3

Milkman1265

Guru
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I've been comparing coverage between carriers and also types of policy.

What i noticed is that DP3 vs HO3 has almost exact coverage minus the personal property coverage.

Owner occupied 1 family

DP3
dwelling 400k
other structure 40k
personal proeprty 0
liability 500k
medical 1000
waterback up 5000/250
premium 800

HO3
dwelling 400k
other structure 40k
personal proeprty 200k
liability 500k
medical 1000
waterback up 5000/250
premium 1800

Now if all coverages are the same and the insured does want personal property, i dont see how the HO3 is superior to the DP3.

What makes the DP3 when endorsed to cover the same exact stuff (except personal property) make it more than 50% cheaper.

Everyone says DP3 is bad for owner occupied, but when endorsed with the right coverage and it comes out far cheaper, what am i missing here?
 
Start with the perils that are covered and then it becomes more obvious.

Also, I haven't seen to many situations where there is that much of a difference in premium. In fact, many times the HO policy is less expensive since it is usually bundled.


Dan
 
I've been comparing coverage between carriers and also types of policy.

What i noticed is that DP3 vs HO3 has almost exact coverage minus the personal property coverage.

Owner occupied 1 family

DP3
dwelling 400k
other structure 40k
personal proeprty 0
liability 500k
medical 1000
waterback up 5000/250
premium 800

HO3
dwelling 400k
other structure 40k
personal proeprty 200k
liability 500k
medical 1000
waterback up 5000/250
premium 1800

Now if all coverages are the same and the insured does want personal property, i dont see how the HO3 is superior to the DP3.

What makes the DP3 when endorsed to cover the same exact stuff (except personal property) make it more than 50% cheaper.

Everyone says DP3 is bad for owner occupied, but when endorsed with the right coverage and it comes out far cheaper, what am i missing here?

Do you think after a fire they will remember not wanting personal property coverage? Many of my companies won't write DP3 on an owner occupied dwelling anyway.
 
i have written statement that they opt-ed out of ho3 but want dp3 and understand both. But regardless of whether or whether not they "remember" the conversation, i'm just trying to dig deeper into the policy and understand it for myself.

Both is allowed on owner occupied, and both same coverage but one is 50% less can personal property make that much of a difference?


But i have 8 carriers that will issue a dp3 over a ho3, no problem.

I'm looking at the endorsement/forms and special form with homeowner and special form with dwelling policy is indentical.

Both under RC, both under same perils, only personal property is missing. and when endorsed personal property only theft is excluded.
 
a $1,000 increase for $200k in personal property sounds fair. $200k in personal property is a lot of stuff, maybe offer a lower limit
 
you would make more money if you didnt try to re-invent the wheel

not trying to re-invent the wheel here, just trying to better understand the policy forms for myself and to help clients.

Not sure how you do business, but i try to learn the things i sell.
 
not trying to re-invent the wheel here, just trying to better understand the policy forms for myself and to help clients.

Not sure how you do business, but i try to learn the things i sell.

Removing personal property coverage from a homeowners policy is not helping anyone.
 
depends on your market, some people dont want it at all.

its your job to EDUCATE clients, the cost difference means nothing when you are sitting in court and the lawyer says....how much did this coverage cost, you say $50 a year, the client says, if i would have known that, i would have paid it......you are toast.....

dont over-analyze things.... I will point out your mistakes every time i see this coverage isnt on a policy.....

And, I will sleep much better at night, knowing i declined a policy then give someone something substandard or didnt fit their needs...
 
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