Dwelling Policy

·      Dwelling Program Eligibility insures 1-, 2-, 3-, or 4-family residential dwellings that are owner occupied (if ineligible for an HO policy), tenant occupied, or seasonal or secondary dwellings. Dwelling Program Eligibility includes 1- to 4-family dwellings for residential use, allows up to 5 roomers or boarders, and permits some incidental business use of the premises, such as school, studio, or office occupancy. Mobile homes may be insured on the basic form (DP‑1), and farms and farm buildings are not eligible.

·      Dwelling Coverages include Coverage A: Dwelling, Coverage B: Other Structures, Coverage C: Personal Property, Coverage D: Fair Rental, and Coverage E: Additional Living Expense.

·      Coverage A: Dwelling insures the dwelling and attached structures, materials and supplies used to construct or repair, and building and outdoor equipment used to service the location when located on the described location. There is no coverage for land. The Coverage A limit is specified on the declarations and should represent the dwelling’s replacement value.

·      Coverage B: Other Structures insures other structures not attached to the dwelling and provides no coverage for structures rented to others and no coverage for land. The insurance limit is up to 10% of Coverage A; DP‑1 does not increase the Coverage A limit, while DP‑2 and DP‑3 provide this as additional insurance.

·      Coverage C: Personal Property insures personal property usual to a dwelling occupancy that is owned or used by an insured or a resident relative who resides with the insured. Property is covered only while on the premises. At the insured’s request, personal property owned by a guest or servant is covered while on the premises.

·      Coverage C: Personal Property does not cover accounts, bank notes, bills, coins, or currency, birds, animals, or fish, aircraft and hovercraft, watercraft, motor vehicles, data, credit cards and electronic fund transfer cards, water or steam, or grave markers.

·      Coverage C: Personal Property provides off‑premises coverage subject to the following conditions: the insured is covered worldwide for loss by a covered peril, the maximum limit is 10% of the Coverage C limit, and this coverage is not additional insurance.

·      Coverage D: Fair Rental Value insures loss in rental value sustained by the insured if a covered loss under Coverage A, B, or C makes the dwelling not fit for normal use, and it does not include continuing expenses. The insurance limit is up to 20% of Coverage A; DP‑1 does not increase the Coverage A limit, while DP‑2 and DP‑3 provide this as additional insurance.

·      Coverage E: Additional Living Expense insures additional living expenses sustained by the insured if a covered loss under Coverage A, B, or C makes the dwelling not fit for normal use, and it does not include continuing expenses. The insurance limit is up to 20% of Coverage A; DP‑1 provides no coverage, while DP‑2 and DP‑3 provide this as additional insurance.

·      DP‑1 (Basic Form) covers the perils of fire, lightning, and internal explosion. Extended Coverage (EC) perils include windstorm or hail, explosion, riot or civil commotion, aircraft and vehicles, smoke, and volcanic eruption. Vandalism and Malicious Mischief (VMM) may also be covered. EC and VMM require an additional premium, and losses resulting from VMM are excluded if the dwelling has been vacant for 60 or more days.

·      DP‑2 (Broad Form) includes all DP‑1 perils and adds coverage for damage by burglars (but not theft), falling objects, weight of ice, snow, or sleet, accidental discharge or overflow of water or steam, sudden and accidental tearing apart, freezing, and sudden and accidental damage from artificially generated electrical current. Under DP‑2, losses to the dwelling and other structures are paid on a replacement cost basis, while losses to personal property are paid on an actual cash value basis.

·       DP‑3 (Special Form) provides open‑perils coverage for the dwelling and other structures, meaning all perils are covered except those specifically excluded. It provides named‑perils coverage for personal property. Losses to the dwelling and other structures are paid on a replacement cost basis, while personal property losses are paid on an actual cash value (ACV) basis.

·      DP‑3 (Special Form) includes specific exclusions, such as collapse unless provided by other coverages; freezing, thawing, or the weight of water or ice on patios, fences, swimming pools, and similar items; theft of property not part of a building, structure, or under construction; and wind, hail, ice, snow, or sleet damage to outdoor radio antennas, trees, shrubs, plants, and lawns. Coverage is also excluded for vandalism and malicious mischief (VMM) and theft if the dwelling has been vacant for more than 60 consecutive days immediately prior to loss, constant or repeated seepage or leakage of water or steam from plumbing, heating, air conditioning, or sprinkler systems, and wear and tear, deterioration, mechanical breakdown, smog, rust, corrosion, smudging, settling, cracking, bulging, and damage caused by birds, vermin, rodents, insects, or domestic animals. Theft of contents is excluded unless added by endorsement.

·      DP‑1 (Basic Form) provides loss settlement on an actual cash value (ACV) basis for Coverage A: Dwelling, Coverage B: Other Structures, and Coverage C: Personal Property. The limit of insurance includes Coverage A as the limit of liability, Coverage B at 10% of Coverage A (not additional insurance), Coverage C at the insured’s choice, Coverage D at 20% of Coverage A (not additional insurance), and no Coverage E.

·      DP‑2 (Broad Form) provides loss settlement on a replacement cost basis for Coverage A: Dwelling and Coverage B: Other Structures, and on an actual cash value basis for Coverage C: Personal Property. The limit of insurance includes Coverage A as the limit of liability, Coverage B at 10% of Coverage A (additional insurance), Coverage C at the insured’s choice, and Coverage D and Coverage E at 20% of Coverage A (additional insurance).

·      DP‑3 (Special Form) provides loss settlement on a replacement cost basis for Coverage A: Dwelling and Coverage B: Other Structures, and on an actual cash value basis for Coverage C: Personal Property. The limit of insurance includes Coverage A as the limit of liability, Coverage B at 10% of Coverage A (additional insurance), Coverage C at the insured’s choice, and Coverage D and Coverage E at 20% of Coverage A (additional insurance).

·      Other Coverages include debris removal, improvements, alterations, and additions, reasonable repairs, property removed, trees, shrubs, and other plants, fire department service charge, collapse, glass, and ordinance or law.

·      Debris Removal covers reasonable expenses for the removal of debris of covered property that is damaged by a covered peril.

·      Improvements, Alterations, and Additions coverage provides that if the insured is a tenant, up to 10% of the Coverage C limit may be used for improvements, alterations, and additions made by the named insured. DP‑1 does not increase the Coverage A limit, while DP‑2 and DP‑3 provide this coverage as additional insurance.

·      Reasonable Repairs coverage provides protection for the insured’s reasonable costs to protect covered property against further damage, and this coverage is not additional insurance.

·       Property Removed coverage is provided for all perils when property is being removed because it is in danger of being damaged by a covered peril. Coverage applies for up to 5 days under DP‑1 and for up to 30 days under DP‑2 and DP‑3.

·      Trees, shrubs, lawns, or plants are covered for loss caused by fire or lightning, explosion, riot or civil commotion, aircraft, vehicles (restrictions apply), and vandalism or malicious mischief, with vandalism or malicious mischief coverage applying only under DP‑2 and DP‑3.

·      Applicable to Broad and Special Forms only for trees, shrubs, and other plants. Damage is not covered for loss caused by wind or hail, weight of ice, snow, or sleet, or theft. Coverage is limited to up to 5% of the Coverage A limit, with a maximum of $500 for any one tree, shrub, or plant, and is provided as additional insurance.

·      Fire Department Service Charge coverage provides up to $500 for contractual liability when a fire department is called to protect covered property from a covered peril. This coverage does not apply if the property is located within the city limits of the responding fire department, is provided as additional insurance, and no deductible applies.

·      This coverage is applicable to Broad and Special Forms only for collapse. DP‑2 and DP‑3 provide coverage only for the abrupt falling down or caving in of a building or part of a building. If the building is still standing, no coverage is provided for cracking, bulging, sagging, bending, leaning, settling, shrinking, or expanding, and the damage must be caused directly by collapse.

·      Collapse damage is covered if caused by Coverage C perils, hidden decay, hidden damage by insects or vermin, the weight of contents, equipment, animals, or people, or defective materials or workmanship. This coverage does not increase the limit applying to the damaged property.

·      This coverage is applicable to Broad and Special Forms only for glass or safety glazing. DP‑2 and DP‑3 provide coverage for breakage of glass or safety glazing material when it is part of a covered building, including direct loss caused by earth movement and damage from pieces, fragments, or splinters of broken safety glazing material, and loss for glass damage settled on a replacement cost basis when required by ordinance or law. There is no coverage if the dwelling was vacant for 60 consecutive days immediately prior to the loss. This coverage does not increase the limit and is not provided under DP‑1.

·      This coverage is applicable to Broad and Special Forms only for Ordinance or Law. It applies to increased costs incurred by the named insured due to the enforcement of an ordinance or law regulation, including construction, demolition, remodeling, renovation, or repair of a covered building or structure. Coverage is limited to up to 10% of the Coverage A limit of liability, and some or all of the limit may be used to pay for increased debris removal costs resulting from the ordinance or law. This coverage is provided as additional insurance under DP‑2 and DP‑3 and is not provided under DP‑1. There is no coverage for costs incurred due to ordinances requiring pollution clean‑up.

·      General Exclusions under Dwelling forms do not cover loss caused by ordinance or law, earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, or government action.

·      Selected Endorsements include Automatic Increase in Insurance, which provides an automatic pro‑rata increase annually based on a stated percentage to help offset inflation. Broad Theft Coverage is available for owner‑occupied dwellings and covers theft, attempted theft, and vandalism and malicious mischief (VMM) as long as the dwelling is not vacant for more than 60 days, with limited theft coverage for tenant‑occupied dwellings.

·      The Selected Endorsement – Personal Liability Supplement provides Personal Liability coverage for claims made against the insured for damages due to bodily injury or property damage, with a standard limit of $100,000 per occurrence. It also includes Medical Payments to Others, which covers claims for necessary medical expenses incurred within three years from the date of bodily injury, subject to a standard limit of $1,000 per person.