Dwelling Policy

Lesson: 4

This is an easy lesson only 7 pages long. Adjusting losses expands on terms and starts to go in to what is needed to adjust claims.

Action:

ISO Policy DP (Dwelling Policy)

DWELLING POLICY

In the following chapters we will discuss the several types of policies written to insure against property damage. Many variations of these policies exist, depending on the insurance company who issued the policy. As an example, Good Will Insurance Co. may offer a “Special” policy and Best Insurance Co. may an “Elite” policy. The “Special” and “Elite” policies are unique to their respective insurance companies, but for the most part both policies generally offer the same coverages as an “HO-3”.

DWELLING POLICIES CHARACTERISTICS AND PURPOSE

A dwelling policy is typically written on a property owned by the named insured but used as a rental property. It is commonly known as a “landlord’s policy”. This is not to say that a dwelling policy is restricted to this type of situation. A dwelling policy may be purchased on a single-family residence. This type of policy may be a preferred choice in situations where an insurance company will not issue an “HO” type policy because of their underwriting guidelines. The property may be in a area difficult to insure or the property may be in need of maintenance. “HO” type policies also require a much higher amount of insurance to be carried on the dwelling. Dwelling policies can be written on one to four family buildings with the named insured’s option to occupy one or more of the units. The personal property coverage is optional. Since it is likely that tenants occupy one or more of the units, the insured may wish to purchase personal property insurance on his “landlord” furnishing. The landlord cannot purchase insurance on the tenant’s personal property.

COVERAGE FORMS – PERILS INSURED AGAINST

A coverage form is the type of policy covering the property listed on the Declaration or “Dec” page of the policy. The perils are the causes of loss insured against in the policy.

BASIC DWELLING POLICY (NAMED PERIL) DP-1

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Basic dwelling policies insure against damages caused by the perils of:
1. Fire or Lighting

2. Internal Explosion For an additional premium, the insured has the option of adding the extended coverage perils of:

3. Windstorm or Hail

4. Riot or Civil Commotion

5. Aircraft

6. Vehicles

7. Smoke

Two other perils can be added with an additional premium for each:
8. Vandalism or Malicious Mischief

9. Theft

BROAD FORM POLICY (NAMED PERIL) DP-2

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Board form dwelling policies insure against damages caused by the perils of:
All perils listed under the Basic form*

10. Damage by burglars

11. Falling Objects

12. Weight of ice, snow or sleet

13. Accidental discharge or overflow of water

14. Sudden and accidental tearing apart cracking, burning or bulging of a steam or hot water system….

15. Artificially generated current

16. Volcanic eruption

SPECIAL FORM DWELLING POLICY (OPEN PREIL) DP-3

Special form dwelling policies insurer against damages on an “open peril” basis. A different approach must be taken when analyzing coverages under this type of policy. Basic and Broad form policies provide coverage for only the perils listed in the policy. Special form policies provide coverage to the dwelling for any peril that is not excluded in the policy. Therefore, there are no specific perils listed. Let’s discuss how to determine coverage under this type of policy: An insured’s title floor cracks suddenly because of a heavy object sitting on the floor. In order to ascertain coverage, a review of the exclusions is necessary. After a review, should you find that no exclusion applies to this loss, it becomes a covered loss.
In review the Basic Form dwelling policy is a named peril policy providing for loss to the dwelling caused by fire, lightning and internal explosion. The extended perils can be purchased for an additional premium. The perils of vandalism and malicious mischief (which includes damage caused by burglars) can also be purchased for an additional premium. The peril of theft can bee purchased for an additional premium as well. The Broad Form dwelling policy is a named peril policy providing for loss to the dwelling caused by 16 named perils. The peril of theft can be purchased for an additional premium. The Special Form dwelling policy provides for loss to the dwelling on an “open peril” basis. Any loss that is not specifically excluded in the policy is a covered loss.

PROPERTY COVERAGES

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In the last section we discussed the types of policies, the perils that are insured against under each policy and the additional perils that can be purchased. The following section will address the types of property that might be protected under the named or open perils policies as well as the breakdown of each coverage.

COVERAGE A – DWELLING

The dwelling coverage provides for:
1. The dwelling of the described location shown in the Declarations (Dec) page, used principally for dwelling purpose, including structures attached to the dwelling.
2. Materials and supplies located on or next to the described location used to construct, alter or repair the dwelling or other structures on the described location
3. If not otherwise covered in this policy, building equipment and outdoor equipment used for the service of and located on the described location.
Note: This coverage does not apply to land, including land on which the dwelling is located. Property coverages B through E are optional and can be purchased individually to suit the insured’s needs.

COVERAGE B – OTHER STURCTURES

The other structures coverage provides for other structures on the described location, set apart from the dwelling be in a clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. This coverage dose not apply to land, including the land on which the other structures are located. The insurance policy does not cover other structures:
1. Used in whole or in part for commercial, manufacturing or farming purposes
2. Rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage.

COVERAGE C – PERSOAL PROPERTY (CONTENTS)

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The personal property coverage provides coverage for personal property usual to the occupancy as a dwelling and owned or used by the insured or members of the insured’s family residing with the insured while it is on the described location. At the named insured’s request, personal property owned by a guest or servant while on the described location can be covered by the policy.
Personal property not covered by the policy includes:

1. Accounts, bank notes, bills, bullion, coins, currency, deeds, evidences of debt, gold other than goldware, letters of credit, manuscripts, medals, money, notes other than bank notes, passports, personal records, platinum, securities, silver other than silverware, tickets and stamps.
2. Animals, birds and fish
3. Aircraft and parts. Aircraft means any contrivance used or designed for flight except model or hobby aircraft not used or designed to carry people or cargo
4. Motor vehicles or all other motorized land conveyances including:

a. Their equipment and accessories
b. Any device or instrument for the transmitting, recording, receiving or reproduction of sound or pictures which is operated by power from the electrical system of motor vehicles or all other motorized land conveyances including

(i) Accessories or antennas
(ii) Tapes, wires, records, discs, or other media for use with any such device or instrument while in or upon the vehicle or conveyance

c. Vehicles or conveyance not subject to motor vehicle registration which are:

(i) Used to service the described location
(ii) Designed for assisting the handicapped

5. Watercraft other than rowboats and canoes
6. Data, including data stored in:

a. Book of accounts, drawings or other paper records
b. Electronic data processing tapes, wires, records, discs or other software media

Note: The policy does cover the cost of blank recordings or storage media and of pre-recorded computer programs available on the retail market.
7. Credit cards or fund transfer cards
If you remove personal property from the described location to a newly acquired principal residence, the Coverage C limit of liability will apply at each residence for the 30 days immediately after you begin to move the property there. This time period will not extend beyond the termination of this policy. Liability is limited to the proportion of the limit of liability that the value at each residence bears to the total value of all personal
property covered by this policy.

COVERAGE D – FAIR RENTAL VALUE

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If a loss to the property described in Coverages A, B or C by a peril insured against under the policy makes that part of the described location rented to others or held for rental by the insured unfit or uninhabitable for its normal use, the policy covers:

1. The fair rental value. This means the fair rental of that part of the described location rented to others or held for rental by the insured less any expenses that do not continue while that part of the described location rented or held for rental is not fit to live in.

2. Payment will be for the shortest time required to repair or replace that part of the described location rented or held for rental.

3. If a civil authority prohibits use of the described location as a result of direct damage to a neighboring location by a peril insured against in the policy, the policy will cover the fair rental values loss for no more than two weeks. The periods of time referenced above are not limited by the expiration of the policy. The policy does not cover loss or expense due to cancellation of a lease or agreement.

COVERAGE E – ADDITIONAL LIVING EXPENSE

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If a loss to the property described in Coverages A, B, or C by a peril insured against under the policy causes a necessary increase in living expenses incurred by the insured so that the insured so that the insured’s household can maintain its normal standard of living, the policy covers:

1. Payment will be for the shortest time required to repair or replace the described location or, if the insured or the insured’s household permanently
relocates, the shortest time required for the insured to settle elsewhere.

2. If a civil authority prohibits the insured from use of the described location as a result of direct damage to a neighboring location by a peril insured against in the policy, the policy covers the additional living expense loss for no more than two weeks The periods of time referenced above are not limited by the expiration of this policy. The policy does not cover loss or expense due to cancellation of a lease agreement.

OTHER COVERAGES (ADDITIONAL)

1. Debris Removal
Debris removal coverage on the dwelling forms is limited to the “reasonable expense” of removing debris of covered property resulting from the insured loss or removing volcanic ash, dust or particles that has caused direct loss to the building or personal property. The cost of debris removal is included in the limit of liability that applies to the damaged property.

2. Reasonable Repairs
The reasonable repairs clause pays the reasonable cost of necessary measures taken solely to protect covered property from further damage. Necessary measures taken to protect covered property include repairs but only those repairs made to the covered property. Payment for reasonable repairs is included in the limit of liability applicable to the property being repaired.

3. Property Removed
The property-removed clause in the dwelling form specifies that endangered property is insured against “direct loss from any cause” and coverage exists from the time removal of the property beings. In dwelling form DP 00 01, insurance applies for no more than five days of removal. In the dwelling form DP 00 02 and DP 00 03 insurance applies for not more than 30 days. The coverage is stated not to “change,” that is, neither to increase nor to decrease the limit of liability applying to the property removed.

4. Lawns, Plants, Shrubs and Trees
In forms DP 00 02 and DP 00 03 only, up to 5% of the Coverage A limit of liability may be applied to these items if damaged by fire, lightning, explosion, riot or civil commotion, aircraft, vehicles (other than those owned or operated by the named insured or a resident of the premises) , vandalism or malicious mischief or damage done by burglars (but not theft of the property). The limit per plant, shrub or three is $500 on
dwelling forms. This coverage can be added to the DP 00 01 by endorsement.

5. Fire Department Service Charge
The policy pays up to $500 for the insured’s liability assumed by contract or agreement for fire department charges incurred when the fire department is called to save or protect covered property from a peril insured against. This coverage does not include property located within the city limits.

6. Collapse
The policy provides coverage for direct physical loss to property involving collapse of a building or any part of a building caused only by one of the following:

a. perils inured against in Coverage C

b. hidden decay

c. hidden insect or vermin damage

d. weight of contents, equipment, animals or people

e. use of defective materials or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or renovation. Loss to an awning, fence, patio, pavement, swimming pool, underground pipe, flue drain cesspool, septic tank, foundation, retaining wall, bulkhead, pier, wharf or dock is not included under items 1 through 5 unless is a direct result of the collapse of a building. Collapse does not include settling, cracking, shrinking, bulging or expansion.

7. Glass and Safety Glazing Material
The policy covers the breakage of glass or safety glazing material, which is part of a covered building, storm door or storm window and the damage to the covered property caused by the broken glass. Note: this coverage does not include loss on the residence premises if the dwelling has been vacant for more than 30 consecutive days immediately before a loss.

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GENERAL EXCLUSIONS

The following exclusions are contained in virtually all versions of the DP policies as well as the homeowners and commercial policies. The primary reasons for these exclusions are to exclude losses that are considered uninsurable (nuclear hazard, war, etc.) and/or exclude losses that are provided for under another type of policy or endorsement (flood, earthquake or sewer backup, etc.) The policy does not insure for the caused directly or
indirectly by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss.

1. Ordinance or Law – meaning enforcement of any ordinance or law regulating the use, construction, repair or demolition of a building or other structure unless specifically provided under this policy.

2. Earth movement – meaning earthquake including land shock waves or tremors before, during or after a volcanic eruption, landslide, mine subsidence, mud flow, earth sinking, rising or shifting unless a direct loss by fire, explosion or breakage of glass or safety glazing material which is part of a building, storm door or storm window ensues and then only the ensuing loss will be paid

3. Water damage – meaning:

a. flood, surface water, waves, tidal water, overflow of a body of water or spray from any of these whether or not driven by wind
b. water which backs up through sewers or drains or which overflows from a sump pump
c. water below the surface of the ground, including water including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or other structures (Direct loss by fire or explosion resulting from water damage is covered)

4. Power failure – meaning the failure of power or other utility service if the failure takes place off the described location. But, if a peril insured against ensues on described location, the policy will pay the ensuing loss

5. Neglect – meaning the insured’s neglect to use all reasonable means to save and preserve property at and after the time of loss

6. War – including undeclared war, civil war, insurrection, rebellion, revolution, warlike acts by a military force or military personnel, destruction or seizure or use for a military purpose and including any consequence of any of these. Discharge of a nuclear weapon will deemed a warlike act even if accidental

7. Intentional loss – meaning any loss arising out of any act committed:

a. by or at the direction of the insured or any person or organization named as an additional insured
b. with intent to cause a loss Loss to property described in Coverage A and B caused by any of the following are not insured against. However, any ensuing loss to property described in Coverage A and B, not excluded or excepted in this policy, is covered.

1. Weather conditions – however, this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in the
paragraph above to produce the loss

2. Acts or Decisions – including the failure to act or decide of any person, group, organization or governmental body.

3. Faulty, inadequate or defective

a. planning, zooming, development, surveying or sitting
b. design, specifications, workmanship, repair, construction, renovation, remodeling, grading or compaction
c. materials used in repair, construction, renovation or remodeling
d. maintenance, in part or all of any property whether on or off the described location

CONDITIONS

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The condition section of the policy outlines the duties to be performed by the insured in the event of a loss. How and when the insurer will pay for a loss after the insured has complied with the conditions. The conditions also define the terminology of the policy. There are 25 conditions applicable to the dwelling property policy, whether it is the basic, broad or special form.

1. Policy Period – this policy applies only to loss which occurs during the policy period

2. Insurable Interest and Limit of Liability – even if more than one person has an insurable interest in the property covered, the policy does not extend liability in any one loss:

a. for an amount greater than the interest of a person insured under this policy
b. for more than the applicable limit of liability.

3. Concealment or Fraud – the entire policy will be void if, whether before or after a
loss, the insured has:

a. intentionally concealed or misrepresented any material fact or circumstance
b. engaged in fraudulent conduct
c. made false statements relating to this insurance

4. The Insured’s Duties After Loss – in case of a loss to covered property, the insured
must see that the following tasks are done:

a. give prompt notice to the insurance company or insured’s agent ‘
b. protect the property from further damage
c. make reasonable and necessary repairs to protect the property
d. keep an accurate record of repair of repair expenses
e. prepare an inventory of damaged personal property showing the quantity, description, actual cash value and amount of loss:
f. attach all bills, receipts and related documents that justify the figures in the inventory
g. show the damaged property as often as requested by the insurance company
h. provide the insurance company with requested records and documents and permit them to make copies
i. submit to examination under oath while not in the presence of any other named insured and sign that statement
j. send to the insurance company, within 60 days after their request, the insured signed sworn proof of loss which sets forth, to the best of the insured knowledge and belief: (i) the time and cause of loss

(ii) the insured’s interest and that of all others in the property involved
(iii) all liens on the property
(iv) other insurance which may cover the loss
(v) changes in title or occupancy of the property during the term of the policy
(vi) specifications of damaged buildings
(vii) detailed repair estimates
(viii) the inventory of damaged personal property described 4e
(ix) receipts for additional living expenses incurred
(x) records that support the fair rental value loss

5. Loss Settlement – Basic Form –covered property losses are settled at actual cash value at the time of Loss, but not more than the amount required to repair or replace the damaged property.

6. Loss Settlement – Broad Form and Special Form – covered property losses are settled as follows:

a. personal property

(i) awnings, carpeting, household appliances, outdoor antennas and outdoor equipment whether or not attached to buildings
(ii) structures that are not buildings at actual cash value at the time of time of loss but not more than the amount required to repair or replace

b. buildings under Coverages A and B at replacement cost without deduction for depreciation, subject to the following:

(i) if at the time of loss the amount of insurance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, the insurance company will pay the cost to repair or replace, after application of the deductible and without deduction for depreciation, but not more than the least of the following amounts:

(a) the limit of liability under this policy that applies to the building
(b) the replacement cost of that part of the building damaged for like construction and use on the same premises
(c) the necessary amount actually spent to repair or replace the damaged building

(ii) if at the time of loss the amount of insurance in this policy on the damaged building is less than 80% of the full replacement cost of the building immediately before the loss, the insurance company will pay the greater of the following amounts, but no more than the limit of liability under this policy that applies to the building:

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(a) the actual cash value of that part of the building damaged
(b) that proportion of the cost to repair after application of deductible and without deduction for depreciation, that part of the building which the total amount of insurance in this policy on the damaged building bears to 80% of the replacement cost of the building

(iii) to determine the amount of insurance required to equal 80% of the full replacement cost of the building immediately before the loss, do not include the value of:

(a) excavations, foundations, piers or any supports which are below the undersurface of the lowest basement floor
(b) those supports in (a) above which are below the surface of the ground inside the foundation walls if there is no basement
(c) underground flues, pipes, wiring and drains

(iv) the insurer will pay no more than actual cash value of the damage unless:

(a) actual repair or replacement is complete
(b) the cost to repair or replace the damage is both less than 5% of the amount of insurance in the policy on the building and less than $2500

(v) the insured may disregard the replacement cost settlement provisions and make claim under this policy for loss or damage to buildings on an actual cash value basis and may than make claim within 180 days after loss for any additional liability on a replacement cost basis.

7. Loss to Pair or Set – in case of loss to pair or set in insurer may elect to:

a. repair or replace any part to restore the repair or set to its value before the loss
b. pay the difference between actual cash value on the property before and after the loss

8. Glass Replacement – loss for damage to glass caused by a peril insured against will be settled on the basis of replacement with safety glazing materials when required by ordinance or law.

9. Appraisal –if the insured and fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent appraiser within 20 days after receiving a written request from the other. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, the insured or insurer may request a judge of a court of record in the state where the described location is
located, make the choice. The appraisers will separately set the amount of loss. If the appraisers submit a written report of an agreement to the insurer, the amount agreed upon will be the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two of the three will set the amount of loss. Each party will pay its own appraiser, and bear the other expenses of the appraisal and umpire
equally.

10. Other Insurance – if property covered by this is also covered by other fire insurance, the insurance company will pay only the proportion of a loss caused by any peril insured against under this policy that the limit of liability applying under this policy bears to the total amount of fire insurance covering the property.

11. Subrogation – the insured may waive in writing before a loss all rights of recovery against any person. If not waived, the insurance company may require an assignment of rights of recovery for a loss to the extent that payment is made to the insured. If an assignment is sought, the person insured must sign and deliver all related papers and cooperate with the insurance company.

12. Suit Against Us – no action can be brought unless the policy provisions have been complied with and the action is started within one year after the date of loss.

13. Our Option – if the insurance company gives the insured written notice within 30 days after they receive your signed, sworn proof of loss, the insurance company may repair or replace any part of the damaged property with like property.

14. Loss Payment – the insurance company will adjust all losses with the insured. They will pay the insured unless some other person is named in the policy or is legally entitled to receive payment. Loss will be payable 60 days after the insurance company receives the insured’s proof loss and:

a. they reach an agreement with the insured
b. there is an entry of a final judgment
c. there is a filing of an appraisal award with insurance company

15. Abandonment of Property – the insurance company need not accept any property abandoned by the insured.

16. Mortgage Clause – the word “mortgagee” includes “trustee”. If a mortgagee is named in the policy, any loss payable under Coverages A and B will be paid to the mortgagee and the insured, as interests appear. If more than one mortgagee is named, the order of payment will be the same as the order of precedence of the mortgages. If the insurer denies the insured’s claim, that denial will not apply to a valid claim of the mortgagee if the mortgagee:

a. notifies the insurer of any change in ownership, occupancy or substantial change in risk of which the mortgagee is aware
b. pays any premium due under this policy on demand if the insured has neglected to pay the premium
c. submits a signed, sworn statement of loss within 60 days after receiving notice from the insurer of the insured’s failure to do so
d. policy conditions relating to appraisal, Suit Against the Insurer and Loss Payment apply to the mortgagee
e. if the insurer decides to cancel or not to renew this policy, the mortgage will be notified at least 10 days before the data of cancellation or non-renewal takes effect
f. if the insurer pays the mortgagee for any loss and denies payment to the insured:

(i) the insurer is subrogated to all the rights of the mortgagee granted under the mortgage on the property
(ii) the insurer may pay to the mortgagee the who principal on the mortgage plus any accrued interest and in this event, the insurer will receive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt

g. subrogation will not impair the right of the mortgagee to recover the full amount of the mortgagee’s claim

17. No Benefit to Bailee – the insurer will not recognize any assignment or grant any coverage that benefits a person or organization holding, storing or moving property for a fee, regardless of any other provision of this policy.

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18. Cancellation – the insured may cancel this policy at any time by returning it to the insurer or by writing the date cancellation is to take effect. The insurer may cancel this policy only for the reasons stated below by letting the insured know in writing of the date cancellation takes effect. This cancellation notice may be delivered to the insured or
mailed to the mailing address shown in the Declarations. Proof of mailing will be sufficient proof of notice:

a. when the insured has not paid the premium, the insurer may cancel at any time by letting the insured know at least 10 days before the date cancellation takes effect
b. when this policy has been in effect for less than 60 days and is not renewal with the insurer, the insurer may cancel for any reason by letting the insured know at least 10 days before the date cancellation takes effect
c. when this policy has been in effect for 60 days or more, or at any time if it is a renewal with the insurance company, they may cancel

(i) if there has been a material misrepresentation of fact which, if known to the insurer, would have caused them not to issue the policy
(ii) if the risk has changed substantially since the policy was issued by letting the insured least 30 days before the date cancellation takes effect

d. when the policy is written for a period of more than one year, the insurer may cancel for any reason at anniversary by letting the insured know at least 30 days before the date of cancellation takes effect
e. when this policy is cancelled, the premium for the period from the date of cancellation to the expiration date will be refunded pro rata
f. If the return premium is not refunded with the notice of cancellation or when this policy is returned, the insurance company will refund it within a reasonable time after the date cancellation takes effect

19. Non-Renewal – the insurance company may elect not to renew this policy. They may do so by delivering to the insured or mailing to the insured at the address shown in the Declarations, written notice at least 30 days before the expiration date of this policy. Proof of mailing will be sufficient proof of notice.

20. Liberalization Clause – if the insurer make a change which broadens coverage under this edition of the policy and without additional premium charge, that change will automatically apply to the policy as of the date the insurer implements the change in the insured’s state. Implementation will take effect provided that this implementation date falls with 60 days prior to or during the policy period stated in the Declarations. This liberalization clause does not apply to changes implemented through introduction of a subsequent edition of the policy.

21. Waiver or Change or Policy Provisions – a waiver or change of provision of this policy must be in writing by the insurer to be valid. The insurer’s request for an appraisal or examination will not waive any of the insurer’s rights.

22. Assignment – assignment of this policy will not be valid unless the insurer gives its written consent.

23. Death – if named insured dies, the insurance company will insure:

a. the insured’s legal representatives, but only with respect to the property of the deceased covered under the policy at the time of death
b. with respect to the insured’s property, the person having proper temporary custody of the property until appointment and qualification of a legal representative

24. Nuclear Hazard Clause –“nuclear hazard” means:

a. any nuclear reaction, radiation or radioactive contamination, whether controlled or uncontrolled or however caused or any consequence of any of these
b. loss caused by the nuclear hazard will not be considered loss caused by fire, explosion or smoke whether these perils are specifically named in or otherwise included within the perils insured against
c. this policy does not apply to loss caused directly or indirectly by nuclear hazard except that direct loss by fire resulting from the nuclear hazard is covered

25. Recovered Property – if the insured or insurer recover any property for which the insurer has made payment under this policy, either party will notify the other of the recovery. At the insured’s option, the property will be returned to or retained by the insured or it will become the insurer’s property. If the recovered property is returned to the insured or retained by the insured, the loss payment will be adjusted based on the amount the insured received for the recovered property.

26. Volcanic Eruption Period – one or more volcanic eruptions that occur within a 72- hour period will be considered as one volcanic eruption.

SELECTED ENDORSEMENTS

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Automatic Increase in Insurance – this endorsement is used to provide an annual increase of 4%, 6% or 8% in Coverages A and B of the dwelling property forms.

Broad Theft Coverage – a residence that is a dwelling, co-op or condominium unit must be owner-occupied to be eligible to use broad theft coverage endorsement DP 04 72. If the residence is an apartment, it must be occupied by a tenant named insured. Once this occupancy requirement is met, both on and off premises theft coverage is available. However, off-premises coverage may be purchased only if on-premises coverage is also purchased. Furthermore, the limit for off-premises coverage may not exceed the onpremises limit. The minimum theft limits both on and off premises is $1000.

Dwelling Under Construction – this endorsement is attached when the intended occupant of the dwelling under construction is the named insured. Contractors may be added as additional insured’s using endorsement DP 04 41. The limit of liability for a dwelling under construction is provisional. At the time of a loss, the applicable limit is a
percentage of the provisional limit, based on the proportion of actual value of property at the time of loss. The premium is 65% of the completed value premium. Additional Information A right to take a statement under oath is a condition of the policy as required of that insured.

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