Understanding Homeowners Insurance Terms: DP3 vs HO3 vs HO6 

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Different types of homes or levels of completion require different types of homeowners insurance. A home that is currently being built doesn’t require the same insurance as a finished house, and a condominium requires different coverage than a single family home. 

Dwelling Under Construction 

A Dwelling Under Construction (DP3) policy is designed to cover your home while it is being built. A DP3 policy generally doesn’t cover any personal belongings, and any credits that might later be applicable (such as premium discounts for having a security system) won’t apply. 

However, damage from fire and weather events as well as premise liability is covered, and with Olympus, policyholders can also enjoy coverage for theft of building materials (typically excluded from most DP3 policies.) 

Once construction is complete, a Dwelling Under Construction policy can easily be converted into a standard homeowners (HO3) policy, with any unearned premiums applied to the new policy so that the homeowner has uninterrupted coverage without any financial penalty. 

Standard Homeowners Insurance 

Standard Homeowners Insurance (HO3) policy is designed to provide coverage for most common events that could cause a loss, such as fire, theft, weather events (excluding flood), and other causes of loss. 

Many HO3 policies have multiple exclusions or limits on different types of loss, so ask your agent to describe coverage allowances and types before choosing a policy. For example, if you have a pool, ask about your pool enclosure coverage, or if you have a boathouse, ask if it is covered. 

Olympus offers some of the broadest coverage available in Florida under our standard HO3 policies, including replacement cost coverage for buildings on your property, replacement cost for fences and docks, and coverage for many water damage situations typically excluded by other policies.  

Condo Insurance 

Condo Insurance (HO6) policy fills in the gaps left by condominium building insurance. While the coverage offered through your building normally protects the building exterior and any common areas or walkways, there are still many things the association’s policy will not insure. Your condo insurance policy will need to protect all personal property (clothing, jewelry, furniture) from loss, and may be required to cover interior walls or even structural damage to the building itself. 

You can also add supplemental policies to cover flood, high value personal items, unusual circumstances like sinkholes or sewer discharge, and more by asking for endorsements to be added to your main policy. Your agent can help you customize your policy so that it is just right for you. 


About Olympus Insurance Company     

Headquartered in Palm Beach Gardens, FL and founded in 2007, Olympus Insurance Company specializes in Florida property insurance. Through its independent agency force, Olympus insures $40 billion worth of residential and investment property including homes, condos, rental property, and valuable personal property, with umbrella coverage and Spartan Enhanced Coverage available. Coverage for individual risks up to $5 million in total insured value is provided on one of the most comprehensive coverage forms in the industry.    

For more information, visit olympusinsurance.com.

This article is for informational purposes only and does not form a part of, replace, change or amend any terms, conditions, provisions or language within your Olympus Insurance policy. We encourage you to read your entire policy.

Olympus Insurance is licensed by the state of Florida. Information found on this site is intended for Florida residents only.