Landlord Insurance vs Homeowners Calculator
Renting out a home converted from primary residence requires switching from HO-3 to DP-3 landlord coverage. This shows the cost differential and the loss-of-rents + extended liability you gain.
| Homeowners (HO-3) base | — |
| Landlord (DP-3) base | — |
| Liability premium load | — |
| Loss-of-rents coverage included | — |
| Total landlord annual cost | — |
When you convert a primary residence to a rental, you must switch from homeowners (HO-3) to landlord/dwelling-fire (DP-3) insurance. Using HO-3 on a rented property = misrepresentation, voiding coverage at claim time.
HO-3 vs DP-3 Coverage Difference
HO-3 covers personal property and assumes owner-occupancy. DP-3 covers dwelling + landlord-owned items (appliances), excludes tenant possessions (tenant needs renters insurance), and adds loss-of-rents and landlord liability.
Loss of Rents Coverage
DP-3 includes up to 12 months of lost rental income if the property becomes uninhabitable from a covered peril (fire, severe weather). HO-3 only reimburses your additional living expenses if YOU were displaced — useless if you don't live there.
Landlord Liability vs Homeowners Liability
DP-3 liability extends to lawsuits from tenants and their guests (slip-and-fall, lead paint, mold claims). Most policies offer $300K-$1M default, with $1-3M umbrella add-ons. Standard HO-3 personal liability does NOT cover business activities including landlording.
Vacancy Clause Risk
DP-3 policies typically suspend or reduce coverage if the property is vacant 60+ days. Add a vacancy permit ($50-200/yr) before renovations or between tenants. Vacant homes are 30-50% more expensive to insure due to vandalism risk.
Last updated May 2026. Sources: ISO DP-3 Form, IRS Pub 527.