About this episode
What the conversation covers.
You move out, keep the house, and rent it to a nice family. The homeowners policy keeps renewing. Then a pipe bursts, and the adjuster asks one simple question: who lives there? That one question can change everything about the claim.
Aaron Bollinger of Bollinsure Insurance Services compares the dwelling fire forms (DP-1, DP-2, and DP-3) with the owner-occupied HO-3 for California property owners: why an HO-3 does not fit a rental, named perils vs open perils, actual cash value vs replacement cost, and the parts that actually decide landlord claims: vacancy, fair rental value, landlord liability, and how the tenant's own HO-4 fits in.
What we cover:
- Why an HO-3 is built for a home the owner lives in, and what the "change in use" problem looks like at claim time
- The dwelling fire family: DP-1 basic, DP-2 broad, and DP-3 special form
- DP-3 vs HO-3 side by side: personal property, liability, loss of use vs fair rental value, and underwriting
- Vacancy and unoccupancy conditions, and what to do before a long gap between tenants
- Fair rental value: what it is meant to replace, and why to check the limit against a realistic repair timeline
- Landlord premises liability, umbrellas, and the tenant's own renters policy
- A walkthrough: a washing machine supply line leak on a DP-3, and the same leak on an old HO-3
- What to bring a broker, and four questions to ask about your form
Resources:
- All Speaking of Insurance episodes
- Landlord insurance in California
- Read the guide: California landlord rental use checklist
- Episode 26 companion: the coverage gaps in the cheapest landlord policy
Clarifications
- Umbrella coverage: some landlords choose to carry a personal umbrella policy, but carriers do not require one. This corrects the line spoken around 10:00.
- Fair rental value: this coverage applies only after a covered loss makes the unit unfit to rent. On the ISO DP 00 03 form, it is capped at 20% of the Coverage A limit.
Get quoted: Compare coverage options with Bollinsure Insurance Services at www.bollinsure.com/quote , or call 562-268-9355 .
CA License 6013787
This episode is for general education only and is not legal, tax, or coverage advice. Coverage, eligibility, and pricing depend on the carrier, underwriting, and your policy terms.
Chapters
- 00:00 Cold open: who lives there?
- 00:32 Welcome and what this episode covers
- 01:22 Disclaimer
- 01:39 Why an HO-3 does not fit a rental
- 03:07 The dwelling fire family: DP-1, DP-2, DP-3
- 05:26 DP-3 vs HO-3 side by side
- 07:11 Vacancy and unoccupancy
- 08:46 Fair rental value and loss of rents
- 09:23 Landlord liability
- 10:11 Where the tenant's HO-4 fits
- 10:24 Claim walkthrough: a supply line leak on a DP-3
- 12:16 Same leak, still on the old HO-3
- 13:10 What to bring a broker
- 14:38 Four questions to ask about your form
- 14:54 Getting help and sign-off
Transcript excerpt
You move out of your house, but you keep the house and you rent it to a super nice family. The mortgage still gets paid, the tenants are happy, and the homeowners policy keeps on renewing. Then a pipe bursts and the adjuster asks a simple question: who lives there? That one question can change everything about the claim.… Full episode on bollinsure.com