Key Takeaways
- DC homeowners policies follow standard ISO forms with district-specific requirements
- The DC Property Insurance Facility (DCPIF) provides residual market coverage for high-risk properties
- Flood insurance is NOT included in homeowners policies and must be purchased separately
- DC has high property values requiring adequate coverage limits and regular policy reviews
- Condo and co-op insurance (HO-6) is critical due to DC's high percentage of multi-unit dwellings
Last updated: January 2026
DC Homeowners and Residential Property Insurance
Standard Homeowners Policy Forms
DC uses ISO (Insurance Services Office) standard homeowners policy forms:
HO-3 Special Form (Most Common)
| Coverage | Type | Typical Limit |
|---|---|---|
| Coverage A - Dwelling | Special (open perils) | Replacement cost |
| Coverage B - Other Structures | Special | 10% of Coverage A |
| Coverage C - Personal Property | Named perils | 50-75% of Coverage A |
| Coverage D - Loss of Use | ALE/Additional Living Expense | 20-30% of Coverage A |
| Coverage E - Personal Liability | Occurrence | $100,000 - $500,000 |
| Coverage F - Medical Payments | No-fault | $1,000 - $5,000 |
Other Homeowners Forms
| Form | Description | Best For |
|---|---|---|
| HO-2 Broad Form | Named perils for dwelling and personal property | Budget-conscious homeowners |
| HO-4 Renters | Personal property and liability only | Apartment renters |
| HO-6 Condo/Co-op | Personal property, unit improvements, liability | Condo and co-op owners |
| HO-8 Older Home | Actual cash value for older homes | Historic properties |
DC Context: Due to high condo and co-op prevalence in DC, HO-6 policies are extremely common. Producers must understand the relationship between master policies and individual unit policies.
DC Property Insurance Facility (DCPIF)
The DC Property Insurance Facility serves as DC's FAIR (Fair Access to Insurance Requirements) Plan.
Purpose and Function
| Aspect | Details |
|---|---|
| Purpose | Residual market for properties unable to obtain coverage in voluntary market |
| Established | Created by DC law to ensure property insurance availability |
| Coverage | Fire and extended coverage on owner-occupied dwellings |
| Eligibility | Must be denied by at least 2 voluntary market insurers |
| Funding | Funded by assessments on insurers writing property insurance in DC |
DCPIF Eligibility Requirements
To qualify for DCPIF coverage:
- Owner-Occupied Requirement - Property must be owner-occupied
- Two Denials - Must show denial letters from 2 different insurers
- DC Location - Property must be located in District of Columbia
- Insurable Condition - Property must meet minimum safety standards
- Good Faith - Cannot have been cancelled for non-payment or fraud
DCPIF Coverage Limitations
| Limitation | Details |
|---|---|
| Coverage Types | Fire, extended coverage, vandalism |
| Policy Limits | Maximum limits lower than voluntary market |
| Premium Costs | Typically 25-50% higher than voluntary market |
| Deductibles | Higher deductibles may be required |
| Exclusions | More exclusions than standard policies |
Exam Tip: DCPIF is DC's residual market mechanism. Remember the owner-occupied requirement and two-denial rule for exam questions.
DC-Specific Property Insurance Considerations
High Property Values
DC has some of the highest property values in the nation:
| Factor | Impact on Insurance |
|---|---|
| Median Home Price | $650,000+ (2026) |
| Replacement Cost | Often exceeds market value |
| Underinsurance Risk | Common due to rapidly rising construction costs |
| Policy Reviews | Annual reviews essential to maintain adequate limits |
Urban Density Challenges
| Challenge | Insurance Consideration |
|---|---|
| Row Houses | Shared walls increase fire spread risk |
| Limited Parking | Higher auto theft and vandalism exposure |
| Proximity to Neighbors | Increased liability exposures |
| Construction | Ongoing construction creates risks |
Flood Exposure
DC has significant flood exposure despite being inland:
- Potomac River - Portions of DC in floodplain
- Rock Creek - Urban flooding during heavy rain
- Anacostia River - Flood-prone areas
- Storm Sewers - Overwhelmed during heavy rain
- NFIP Coverage - National Flood Insurance Program essential
Critical: Flood damage is NEVER covered by homeowners policies. DC property owners in flood zones must purchase separate NFIP or private flood insurance.
Condo and Co-op Insurance (HO-6)
Master Policy vs. Individual Policy
| Coverage | Master Policy | HO-6 Individual Policy |
|---|---|---|
| Building Structure | Covered | Not covered |
| Common Areas | Covered | Not covered |
| Unit Interior | Varies | Typically covered |
| Unit Improvements | Usually not covered | Covered |
| Personal Property | Not covered | Covered |
| Personal Liability | Limited | Covered |
| Loss Assessment | Not included | Optional coverage |
HO-6 Coverage Components
| Coverage | Description | Typical Limit |
|---|---|---|
| Personal Property | Contents within unit | $25,000 - $100,000 |
| Loss Assessment | Assessments from condo association | $1,000 - $50,000 |
| Unit Improvements | Alterations, fixtures, built-ins | $10,000 - $50,000 |
| Personal Liability | Bodily injury, property damage liability | $100,000 - $500,000 |
| Medical Payments | Guest injuries | $1,000 - $5,000 |
| Loss of Use | Hotel, temporary housing | 20% of personal property |
DC Condo Insurance Challenges
- Master Policy Gaps - Individual owners must understand what master policy covers
- Assessment Risk - Large assessments possible after major loss
- Betterment Issues - Who pays for improvements vs. original fixtures
- Competing Policies - Coordination between master and individual policies
- Special Assessments - Loss assessment coverage critical
Replacement Cost vs. Actual Cash Value
Replacement Cost Coverage
| Aspect | Details |
|---|---|
| Definition | Cost to replace with new property of like kind and quality |
| Depreciation | No deduction for depreciation |
| Settlement | Typically requires actual replacement |
| Premium | Higher premium than ACV |
| Recommendation | Standard for most DC homeowners |
Actual Cash Value Coverage
| Aspect | Details |
|---|---|
| Definition | Replacement cost minus depreciation |
| Depreciation | Deducted from settlement |
| Settlement | Paid immediately without replacement requirement |
| Premium | Lower premium than replacement cost |
| Use Cases | Older homes, investment properties |
Common Endorsements and Optional Coverages
Recommended Endorsements for DC Properties
| Endorsement | Purpose | Typical Cost |
|---|---|---|
| Water Backup | Sewer/drain backup coverage | $50-150/year |
| Equipment Breakdown | HVAC, appliance failures | $25-75/year |
| Increased Limits | Higher limits for jewelry, art | Varies by value |
| Identity Theft | Identity theft expenses | $25-50/year |
| Home Business | Business property and liability | $150-500/year |
| Service Line | Underground utility line repairs | $50-100/year |
Special Considerations for DC Properties
| Property Type | Special Coverage Needs |
|---|---|
| Row Houses | Shared wall coverage, party wall agreements |
| Historic Homes | Agreed value, specialized restoration coverage |
| Rental Properties | Landlord coverage, loss of rents, tenant discrimination liability |
| High-Value Homes | Increased limits, scheduled property, umbrella liability |
Claims Handling in DC
Prompt Payment Requirements
While DC doesn't have a specific prompt payment statute for property insurance, DISB enforces reasonable claims handling:
| Timeframe | Requirement |
|---|---|
| Acknowledgment | Acknowledge claim within 15 business days |
| Investigation | Begin investigation promptly |
| Communication | Regular updates to policyholder |
| Payment | Settle or deny within reasonable time |
| Explanation | Written explanation if claim denied |
Policyholder Rights
DC policyholders have the right to:
- Fair and prompt claims investigation
- Clear explanation of coverage determinations
- Appeal denied claims
- File complaints with DISB
- Pursue legal action if necessary
Exam Tip: While DC doesn't mandate specific timeframes like some states, DISB actively investigates claims handling complaints and enforces fair treatment.
Test Your Knowledge
What is the DC Property Insurance Facility (DCPIF)?
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Test Your Knowledge
What type of homeowners policy is most appropriate for DC condo owners?
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