by ehbmiscmail » Mon Sep 13, 2010 11:14 pm
I have a condo rented to others (annual basis). What are the differences in coverage between forms DF3 & HO-6 (with Unit Owners Rented to Others endt, Loss Assessment & Loss of Rents)?
Posted: Tue Sep 14, 2010 04:23 pm Post Subject:
"DF-3"?? I think you meant DP-3.
The primary difference between a DP-3 and an HO-6, endorsements aside, is the fact that HO-6 is intended for use when the property is OWNER-OCCUPIED. If you are renting the property to others unrelated to you, a DP-3 with appropriate endorsements as needed, is the proper coverage form.
The most appropriate endorsement added to a DP-3 for a rented dwelling is LIABILITY, which is not a standard coverage in any "dwelling" policy.
Because HO-6 includes liability, some landlords prefer to purchase that more comprehensive policy and add the endorsements you refer to above.
I suppose it all comes down to which policy make the most sense to you, both in terms of coverage as well as cost. Have your agent quote it both ways, apples-to-apples as close as possible, and see if there is a difference.
I would think that a properly endorsed DP-3 will be slightly less expensive. But maybe not enough to make a difference to you.
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