How to Get a State Farm Rental Dwelling Policy Special Form 3

To get a State Farm Rental Dwelling Policy Special Form 3, you work with a licensed State Farm agent or call 844-242-1899; State Farm does not offer an online self-service quote for this product.¹ The policy follows the industry-standard DP-3 framework and is the broadest of the three dwelling fire tiers, covering the rental structure on an open-perils basis along with lost rental income, liability lawsuits, and medical payments for third-party injuries.

How to Get a Quote

Use the agent locator on statefarm.com or call the number above. The agent gathers details about the property, runs underwriting, and generates a formal application for you to sign. Have the following ready before the call, because each item directly affects whether the property qualifies and what you pay:

Year built and square footage, which set the baseline replacement cost for the dwelling.
Roof age and material. Impact-resistant roofing products like Class 4 hail-resistant shingles may qualify for a discount.²
Heating, electrical, and plumbing systems. Older knob-and-tube wiring or polybutylene pipes can make a property harder to insure; modern breakers and updated plumbing reduce risk.
Claims history on the property. Prior claims, including those from a previous owner, affect eligibility and pricing.

During the quote you also pick a deductible, the amount you pay out of pocket on each claim before coverage responds. A higher deductible lowers the annual premium but raises your exposure after a loss. Most landlords settle somewhere between $1,000 and $2,500.

Older properties may need a four-point inspection covering roof, electrical, plumbing, and HVAC before State Farm will bind coverage. Your agent will tell you if that applies.

What the Policy Covers

A DP-3 splits protection into separate coverages, each with its own dollar limit on the Declarations Page.

Dwelling (Coverage A). The main building and attached structures like a built-in garage or deck. State Farm writes this on a replacement cost basis, paying to repair or rebuild up to the limit without a depreciation deduction.³
Other structures (Coverage B). Detached items on the property such as fences, sheds, and detached garages, usually limited to a percentage of the dwelling value.
Personal property (Coverage C). Furniture or items you supply with the unit or use to maintain it. This does not extend to anything the tenant owns.³
Loss of rents (Coverage D). Reimburses the rental income you would have collected if a covered loss makes the property uninhabitable. The payout is net of expenses that stop while the property sits empty, like utilities you normally pay, so you receive the rental income actually lost rather than the gross rent.³

Liability and Medical Payments

Liability coverage pays legal defense costs and any resulting settlement or judgment, up to your policy limit, if someone is injured on the property and sues. Slip-and-fall accidents and injuries from poorly maintained railings are the classic examples, and the coverage extends to other bodily injury claims as well.³

Medical payments coverage handles smaller injury claims from visitors without a lawsuit. If a guest trips on the front steps and goes to the emergency room, the policy pays the bill up to a per-person limit. This coverage does not apply to tenants who live at the property.

Why Special Form 3 Instead of DP-1 or DP-2

The “Special Form 3” label is the reason to pick this policy over the cheaper tiers. A DP-3 covers the structure on an open-perils basis, meaning every cause of damage is covered unless the policy specifically excludes it. Fire, lightning, windstorm, hail, vandalism, falling objects, and burst pipes are all included without needing to be listed. If State Farm wants to deny a structural claim, the burden sits with the insurer to prove an exclusion applies.⁴

The DP-1 Basic Form covers only fire, lightning, and internal explosion as named perils. The DP-2 Broad Form adds windstorm, hail, vandalism, smoke damage, and weight of ice and snow, among others, but still works from a closed list. Neither matches the structural protection of a DP-3.⁴

One wrinkle: personal property under a DP-3 is still written on a named-perils basis. If the cause of damage to furnishings you supply with the unit is not on the policy’s list, that loss is on you.⁴

What the Policy Excludes

Even open-perils coverage has firm boundaries. The State Farm rental dwelling policy does not cover:

Flood or underground water damage. A separate flood policy, typically through the National Flood Insurance Program or a private carrier, handles this.
Earth movement, including earthquakes, landslides, and sinkholes. Separate endorsements or policies are required.
Continuous seepage or leakage. A burst pipe is covered; water that has been slowly leaking behind a wall for months is not.
Settling, deterioration, and contamination. Gradual foundation movement, dry rot, and environmental contamination are treated as maintenance.
Damage from birds, rodents, insects, and domestic animals.³
Intentional damage by a tenant and normal wear and tear. Accidental tenant-caused damage is often covered.³

Binding Coverage and the Declarations Page

To bind the policy, you pay the initial premium or set up escrow billing through your mortgage lender. State Farm then issues a Declarations Page confirming the effective date, listing each coverage with its dollar limit, showing the deductible, and identifying any endorsements. Your mortgage lender and property manager will both ask for it, so keep a copy accessible.

Read the Declarations Page carefully before filing it away. Confirm that the dwelling limit reflects actual replacement cost rather than the purchase price or market value. Check that the loss-of-rents figure matches your real rental income. Corrections are much easier to make before a claim than during one, so flag anything wrong with your agent right away.

If You Need to File a Claim Later

You can file online at statefarm.com/claims, through the State Farm mobile app, or by calling your agent. The online system tracks status, points you to repair shops, and sets up direct deposit.⁵ Document damage with photos before any temporary repairs, and save receipts for emergency work like boarding up a window or tarping a roof, since the policy generally pays for reasonable steps to prevent further damage. Keep records of when the tenant vacated and what rent was owed, because loss-of-rents coverage begins from the date the unit became uninhabitable.

Tenant Belongings Are Not Covered

Your dwelling policy explicitly leaves out the tenant’s personal property. If a fire destroys their furniture, electronics, and clothing, the loss is theirs unless they carry renters insurance.³ Most landlords build a renters insurance requirement into the lease. State Farm sells renters insurance directly, so a tenant can buy from the same company that writes your dwelling policy.

1
State Farm. Rental Property Insurance for Your Rental Property
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State Farm. Homeowner Insurance Discounts
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State Farm. Rental Dwelling Insurance
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North Carolina Department of Insurance. Dwelling Policies
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State Farm. State Farm Claims – File a Claim, Manage a Claim