Dwelling Policy Concepts

Eligibility

Owner or tenant occupied primarily used for residential purposes with up to 4 units and no more than 5 roomers or boarders. Incidental businesses that do not involve retail sales can be here. 

Purpose

Used to insure residential properties that may be ineligible for a homeowner’s policy due to age, value, location, or intended use (rental properties). 

DP-1 Basic-Perils Insured Against

Fire, lightning, and internal explosion.

Extended coverages can be added (WHARVES) along with vandalism and malicious mischief all for an additional premium.

DP2- Broad Perils Insured Against

Fire, lightning, internal explosion, WHARVES, VMM, and BBBICEGOLF are the named perils in the policy.

DP-3 Special Perils Insured Against

This policy form has open perils coverage but includes 13 exclusions. Theft IS covered in this policy form with some exceptions. 

Dwelling Coverage Limits for DP-1

Actual cash value and covered for basic perils only.

Dwelling Coverage Limits for DP-2

Replacement cost value for the broad perils only.

Dwelling Coverage Limits for DP-3

Replacement cost value for open perils including theft.

Other Structures Limits DP-1

Always 10% of coverage A at actual cash value, but it is included in the coverage A limit of insurance.

Other Structures Limits DP-2

Always 10% of coverage A at a replacement cost value and is paid in addition to the coverage A limit of insurance. Insured against broad form perils. 

Other Structures Limits DP-3

Always 10% of coverage A at a replacement cost value and is paid in addition to the coverage A limit of insurance. Insured against open perils. 

Personal Property Limits DP-1

Not automatically included on the policy, but the limit of insurance coverage can be chosen by the insured with the valuation method of actual cash value. Perils insured against are the 3 listed in the basic form. No theft

Personal Property Limits DP-2

Not automatically included on the policy, but the limit of insurance coverage can be chosen by the insured with the valuation method of actual cash value. Perils insured against are the 16 listed in the broad form. No theft

Personal Property Limits DP-3

This coverage is insured against the 16 named perils in the broad form, even though coverage A and B are open perils. The coverage amount can also be selected by the insured, and the valuation method is actual cash value. This is not automatically included on the policy. No theft

Fair Rental Value Limits DP-1

Coverage provided at 20% of A, but it included in the coverage A limit and only insured against the basic perils.

Fair Rental Value Limits DP-2

Coverage provided at 20% of A and it is in addition to the coverage A limit. Also provided against the 16 named perils. This coverage is SHARED with coverage E. 20% of A between both coverage D and E.

Fair Rental Value Limits DP-3

Coverage provided at 20% of A and it is in addition to the coverage A limit. Also provided against open perils. This coverage is SHARED with coverage E. 20% of A between both coverage D and E.

Additional Living Expense Limits DP-1

This coverage is not provided on the basic form dwelling policy.

Additional Living Expense Limits DP-2

20% of coverage A that is in addition to the policy limit, but the coverage is SHARED with coverage D. Broad perils are insured against. 

Additional Living Expense Limits D-3

20% of coverage A that is in addition to the policy limit, but the coverage is SHARED with coverage D. Open perils are insured against. 

Dwelling Policy Exclusions

Ordinance or Law, Earth Movement, Water, Power Failure, Neglect, War, Nuclear Hazard, Intentional Loss, Governmental Action.

Dwelling Policy Conditions

Deductible, loss settlement, other insurance agreement, suit against us, our option, loss payment, cancellation, nonrenewal, and volcanic eruption.

Dwelling Policy Endorsements

Automatic increase in insurance, theft coverages, dwelling under construction, and personal liability supplement. 

Automatic Increase in Insurance Endorsement

allows for an automatic annual increase in the coverage A and B limits of insurance by a percentage shown on the endorsement. Increase is calculated per day. 

Dwelling Under Construction Endorsement

The limit of liability for coverage A is provisional and is based on the building’s value upon completion. The limit of insurance in place before completion is a percentage equal to the proportion of the current value to the value of the completion date. 

Theft Coverage Endorsement

this endorsement adds the coverage for personal property. There are two form available to purchase, one for tenant occupied homes and the other for owner occupied homes. 

Personal Liability Supplement Endorsement

Can be written as a separate policy or am endorsement to cover the insured’s liability exposures. The residence MUST be occupied by the insured and coverages are similar to that found in the homeowners policy. 

Limit of Liability- $100,000 per occurrence

Medical Payments- $1,000 per person

Dwelling Coverage

residential building including structures attached to the dwelling. Coverage does not apply to land.

Other Structures Coverage

Structures other than the building that are detached from the dwelling by a clear space. Coverage does not apply to land.

Personal Property Coverage

household and personal property usual to the occupancy of the dwelling. This coverage only applies when the property is located at the dwelling unless being moved to a newly acquired principal residence for 30 days.

Fair Rental Value Coverage

When the described location is being rented to others and a covered peril causes a direct loss to the property that makes the space uninhabitable, this coverage pays for the lost rent while the tenants are out of the building for repairs. The lost income is paid until the policy limit for this coverage is reached. 

Additional Living Expense Coverage

Coverage for indirect losses that occur as a result of a covered peril. This pays for the necessary increase of expenses when the location is uninhabitable to maintain the insured’s standard of living.

Trees, Shrubs, and Other Plants

Coverage only provided on the broad and special form. The limit of insurance is up to 5% of coverage A and no more than $500 per any one of these items.

Broad Theft Coverage Endorsement

endorsement for owner occupied homes and can provide on and off premises coverage for the theft, attempted theft, or vandalism of personal property.

Limited Theft Coverage Endorsement

endorsement for owner occupied homes and can provide on premises coverage only for the theft, attempted theft, or vandalism of personal property.