Quick comparison
| Concept | DP1 | DP2 | DP3 |
|---|---|---|---|
| Traditional form position | Basic | Broad | Special |
| Typical dwelling-peril approach | Named perils | Broader named perils | Open perils / special form, subject to exclusions |
| Loss settlement | Do not infer this from the label alone. Review the declarations, form and endorsements for actual cash value or replacement-cost provisions. | ||
| Eligibility | Varies by insurer and can depend on condition, age, roof, updates, occupancy, claims, location and other underwriting factors. | ||
Named peril versus open peril
TDI explains that a named-peril policy covers events listed in the policy, while an all-risk or open-peril policy covers events that are not specifically excluded. Open-peril does not mean every possible loss is covered; exclusions, conditions and deductibles still apply.
Texas forms can vary
TDI has approved dwelling forms in Texas, including broad named-peril DP2 and special-form DP3 filings. Individual insurers can have approved forms and endorsements that differ, which is why the actual contract matters more than shorthand alone.
What to compare besides the DP label
- Dwelling valuation and loss settlement.
- Wind and hail deductibles.
- Water-related coverage and exclusions.
- Vandalism, theft and vacancy provisions.
- Liability and medical-payments options.
- Fair rental value or loss-of-rents coverage.
- Ordinance or law and other endorsements.
Which form fits a rental property?
The answer depends on the building, occupancy, eligibility and owner's coverage priorities. A well-maintained occupied rental may have broader options than an older, vacant, under-renovation or difficult-to-place property. Compare coverage and price together.
Ask for the actual policy form and loss-settlement basis. “DP3” is useful shorthand, but the declarations, endorsements, exclusions and deductibles determine what the policy actually does.
Comparing dwelling policies for a Texas rental?
Insurance Plus can review available forms, valuation, deductibles and coverage differences for the specific property.
Related Texas insurance guides and coverage
Frequently asked questions
Is DP3 always better than DP1?
DP3 is traditionally broader on the dwelling, but the appropriate policy depends on eligibility, actual policy language, valuation, exclusions, endorsements, deductibles and the owner's needs.
What does named peril mean?
A named-peril policy covers causes of loss specifically listed by the policy, subject to its terms, exclusions and conditions.
Does DP3 cover every type of damage?
No. Open-peril or special-form coverage remains subject to exclusions, limitations, conditions and deductibles.
Can a vacant rental use a dwelling policy?
Possibly, but vacancy can change eligibility and coverage. Actual occupancy and provider requirements should be reviewed.
Primary references
- Texas Department of Insurance — All risk or named peril
- Texas Department of Insurance — approved DP2/DP3 dwelling forms
These sources provide general Texas consumer or policy-form information. The terms of the policy actually issued control coverage.
Independent Texas insurance agency · 2626 Cole Ave #300, Dallas, TX 75204 · 214-351-4097
Last reviewed September 19, 2026.
