Key Takeaways
- Dwelling policies (DP-1, DP-2, DP-3) cover residential properties not eligible for homeowners coverage
- DP-1 provides basic named perils coverage, DP-2 provides broad coverage, and DP-3 provides special form coverage
- Dwelling policies are commonly used for rental properties, vacant homes, and older properties
- Liability coverage must be added by endorsement on dwelling policies (not included automatically)
- Tennessee requires the same cancellation notice for dwelling policies as homeowners policies
Last updated: January 2026
Tennessee Dwelling Insurance
Dwelling policies provide property coverage for residences that don't qualify for homeowners insurance.
Dwelling Policy Forms
Tennessee uses standard dwelling policy forms:
Dwelling Policy Comparison
| Form | Coverage Type | Dwelling Coverage | Contents Coverage |
|---|---|---|---|
| DP-1 | Basic | Named perils (10) | Named perils |
| DP-2 | Broad | Named perils (18) | Named perils |
| DP-3 | Special | Open perils | Named perils |
DP-1 Basic Form Perils
The DP-1 covers these 10 named perils:
- Fire or lightning
- Internal explosion
- Windstorm or hail (limited)
- Smoke
- Aircraft
- Vehicles
- Riot or civil commotion
- Vandalism or malicious mischief
- Theft
- Volcanic eruption
DP-2 Broad Form Additions
DP-2 adds these perils to the DP-1 coverage:
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge of water or steam
- Freezing
- Sudden and accidental tearing apart, cracking, burning, or bulging
- Artificially generated electrical current
- Sudden and accidental damage from smoke
- Volcanic eruption (extended)
When to Use Dwelling Policies
Dwelling policies are appropriate for:
| Property Type | Recommended Form |
|---|---|
| Rental property | DP-2 or DP-3 |
| Vacation home | DP-2 or DP-3 |
| Vacant property | DP-1 (with vacancy permit) |
| Older home (actual cash value) | DP-1 or DP-2 |
| Property under renovation | DP-1 with endorsements |
Exam Tip: Dwelling policies do NOT automatically include liability coverage. Personal Liability Supplement must be added by endorsement.
Test Your Knowledge
Which dwelling policy form provides open perils coverage on the dwelling?
A
B
C
D
Test Your Knowledge
A producer is helping a client insure a rental property in Tennessee. What type of policy would be most appropriate?
A
B
C
D