DP3 or HO3? Why Does It Matter?
DP3 refers to insurance policies that are provided to owners that rent their property. The HO3 policy is for owners that are actually living at their property.
It’s important because your insurance company will provide different coverages depending on the situation at the property. If it’s rented, or if you’re living there as the owner. If it’s rented, the insurance company may see that as a higher risk. Since the insurance companies assess the risk differently, they will view the policies differently. If you don’t disclose to them that you are or aren’t living there, they could potentially cancel your policy.