What type of policy is likely to cover improvements and betterments for renters?

A DP 3 policy, also known as a Special Form Dwelling policy, is designed to provide comprehensive coverage for renters, specifically for improvements and betterments made to the rented property. This type of policy typically covers a broader range of risks, including theft and vandalism, along with damage to personal property.

Importantly, renters often make enhancements to the property they occupy, such as remodeling a kitchen or adding fixtures. The DP 3 policy acknowledges these improvements by providing coverage for the value added through these enhancements up to a specified limit. This contrasts with more basic policies, which may not offer the same level of protection for changes made by the tenant.

In contrast, other options might not provide the same extent of coverage for improvements and betterments. For example, a DP 1 policy generally offers limited coverage and is focused primarily on the structure itself rather than any added value from a renter's improvements. A Business Owners policy targets commercial ventures and their specific needs rather than residential renters, while a Commercial Property policy is similarly geared towards businesses and would not typically cover the personal improvements made by renters in a dwelling context. This makes the DP 3 policy the most suitable option for covering renters’ improvements and betterments.