Fire insurance and Dwelling Fire policies cover non-owner-occupied dwellings, rentals, vacant property, and substandard risks. Carriers, MGAs, and TPAs writing DP-1, DP-2, and DP-3 need a platform that handles named-peril and open-peril forms together.
Fire insurance — in modern P&C usually written as a Dwelling Fire (DP) policy — covers non-owner-occupied dwellings, rental dwellings, seasonal homes, vacant homes, and substandard risks that do not qualify for a standard ISO HO homeowners form. It also serves as the underlying personal property form for many specialty and surplus-lines residential programs.
This page is a line-of-business reference for dwelling-fire carriers, MGAs, TPAs, and program administrators evaluating a policy administration platform for DP-1, DP-2, and DP-3 books.
The Dwelling Fire form set comes in three flavors. DP-1 is a basic named-peril form that pays actual cash value. DP-2 is a broad named-peril form with replacement cost on the dwelling. DP-3 is an open-peril (special) form on the dwelling with named-peril contents.
Mercury's configurable forms library supports DP-1, DP-2, and DP-3 form sets with date-driven endorsement applicability and version control through the policy lifecycle.
Dwelling Fire is the right form for non-owner-occupied dwellings: rentals, seasonal homes, dwellings under construction (with a builders-risk endorsement), and vacant dwellings (with a vacancy endorsement).
Mercury's configurable underwriting workflow can branch on occupancy class (owner, tenant, seasonal, vacant), apply use-class rate factors, and require the appropriate endorsement set per occupancy.
Unlike a homeowners policy, the Dwelling Fire form does not include personal liability by default. Liability is added by endorsement, frequently as a Personal Liability Supplement with its own limit and rating.
The platform has to support add-on liability with its own form selection, limit, and rating logic — and the underwriting workflow has to require it explicitly when the carrier's appetite calls for it.
Dwelling Fire policies typically carry a coinsurance clause requiring the dwelling to be insured to a percentage of replacement cost. Insurance to Value (ITV) validation has to run at quote, bind, endorsement, and renewal.
Mercury's configurable rating supports replacement-cost calculations through external ITV vendors, coinsurance validation, agreed-value endorsements, and date-driven rate tables.
Does Mercury support DP-1, DP-2, and DP-3 on the same policy administration tenant?
Yes. Mercury's configurable forms library supports DP-1, DP-2, and DP-3 form sets, with named-peril and open-peril rating options on the same policy administration tenant.
Can Mercury attach a vacancy or builders-risk endorsement to a Dwelling Fire policy?
Yes. Mercury's product configuration supports vacancy, builders-risk, and tenant-occupied endorsements with date-driven applicability through the policy lifecycle.
Does Mercury support add-on personal liability for Dwelling Fire?
Yes. Mercury supports configurable Personal Liability Supplement endorsements with their own limit selection, rating, and forms attachment.
