"Landlord Insurance in Washington (DP-3), Explained"
When you rent a property to tenants, a homeowners policy is the wrong tool — it's written for owner-occupants. The right coverage is a landlord policy, most commonly a DP-3 (Dwelling Policy form 3). Here's what that means.
What a DP-3 covers
The DP-3 is the broadest standard dwelling policy and the landlord standard:
- The structure on an open-perils, replacement-cost basis (broadest protection).
- Other structures on the property.
- Loss of rents — reimbursement for rental income lost while the property is uninhabitable after a covered loss.
- Landlord liability — for injuries on the property you're liable for.
It does not cover the tenant's belongings (that's their renters insurance) or your personal contents beyond what you keep there.
What to add
- Adequate liability, plus an umbrella that extends over your rentals.
- Loss of rents at a realistic level.
- Coverage for any appliances/contents you provide.
- Flood/earthquake if the location warrants.
Frequently asked questions
What is a DP-3 landlord policy? The broadest standard dwelling policy for rental properties — open-perils, replacement-cost structure coverage plus loss of rents and landlord liability.
Does landlord insurance cover my tenant's belongings? No. Tenants need their own renters insurance; your landlord policy covers the structure, your liability, and lost rent.
Do I need landlord insurance if I rent out my old home? Yes — once it's a rental, a homeowners policy no longer fits and may not respond to claims. Switch to a landlord (DP-3) policy.
More in this series: Short-Term Rental Insurance in Washington · Landlord vs Homeowners Insurance: Know the Difference
Related: Coverage Gap Calculator → · The Equity-Wealthy Household’s Insurance Guide →
Rental and landlord coverage overlaps with personal liability and location risk, so also read Is a $1 Million Umbrella Policy Enough? and High-Value Home Insurance in Snoqualmie Ridge.
Trella Insurance is an independent brokerage in Bellevue, WA. Request a free review or try the coverage gap calculator.
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