Dwelling Fire Insurance in Denver Colorado

Denver, Colorado Dwelling Fire Insurance

Dwelling fire insurance is a property policy covering homes that don't qualify for standard homeowners insurance. It protects the dwelling structure from fire and other perils, making it essential for rental properties, vacant homes, and investment properties throughout the Denver area.

Why You Need Dwelling Fire Insurance in Denver, Colorado

Standard homeowners insurance won't cover properties you don't occupy as your primary residence—creating a dangerous coverage gap for landlords and property investors. Colorado faces significant risks including wildfires, hailstorms, and severe winter weather that can damage unoccupied or rental properties. This coverage is designed for rental and investment properties, vacation homes, vacant homes awaiting sale or renovation, older homes that don't meet standard underwriting guidelines, and properties under construction.

Dwelling Fire Insurance Policy Types

DP-1 Basic Form

The DP-1 is the most basic dwelling fire policy, covering only specifically named perils: fire, lightning, and internal explosion. Claims are settled on an actual cash value basis, meaning depreciation is deducted from payouts. This form is typically chosen for vacant properties, older buildings that don't qualify for broader coverage, or when minimal protection is needed. It's often the only option available for vacant homes.

DP-2 Broad Form

The DP-2 provides significantly more protection than the basic form. It covers all DP-1 perils plus windstorm, hail, explosion, riot, aircraft and vehicle damage, smoke, vandalism, theft, weight of ice and snow, falling objects, and accidental water discharge. Claims for the dwelling structure are settled at replacement cost value. This form offers a strong balance of coverage and affordability for most rental properties.

DP-3 Special Form

The DP-3 is the most comprehensive dwelling fire policy available. Unlike named peril policies, the DP-3 uses open peril coverage—meaning all risks are covered unless specifically excluded. This shifts the burden of proof to the insurer. Claims are paid at full replacement cost value. The DP-3 is ideal for landlords seeking maximum protection and is the closest dwelling fire policy to a standard homeowners policy.

Common Dwelling Fire Insurance Coverages

Dwelling coverage protects the main structure and attached garages from covered perils. Other structures coverage extends protection to detached garages, sheds, and fencing. Fair rental value coverage reimburses rental income lost while the property is uninhabitable due to a covered loss. Limited personal property coverage can protect landlord-owned items like appliances. Liability coverage, often available as an add-on, protects against lawsuits from injuries on your property.

How Does Dwelling Fire Insurance Differ from Homeowners Insurance?

Dwelling fire insurance is designed for non-owner-occupied properties, while homeowners insurance covers your primary residence. Dwelling fire policies focus on protecting the structure rather than personal belongings. Liability and personal property protection are typically optional add-ons. Dwelling fire policies also accommodate vacancy periods that would void a standard homeowners policy—most homeowners policies suspend coverage after 30 to 60 days of vacancy.

Who Needs Dwelling Fire Insurance in Colorado?

Landlords renting single-family homes, duplexes, or small multi-family properties need dwelling fire coverage since standard homeowners insurance won't apply. Owners of vacant homes awaiting sale, under renovation, or between tenants require this protection. Property investors with non-owner-occupied real estate, owners of seasonal homes in Colorado's mountain communities, and people with older homes that don't meet standard underwriting requirements all benefit from dwelling fire insurance.

How Much Does Dwelling Fire Insurance Cost in Colorado?

Dwelling fire insurance costs vary based on policy type, property value, location, and coverage limits. DP-1 policies are the least expensive due to limited coverage, while DP-3 policies cost more but provide comprehensive protection. Upgrading from a DP-1 to DP-3 typically adds $400 to $600 annually. Colorado properties in high-risk wildfire or hail areas may face higher premiums. Claims history, property condition, and security features also affect rates.

Get a Dwelling Fire Insurance Quote in Denver, Colorado

Our dwelling fire insurance agents serve Denver, Colorado and surrounding areas including Aurora, Golden, Lakewood, Thornton, and Westminster. Contact Seguros Ideal Inc today for a free quote on rental property, vacant home, or investment property coverage.