Dwelling Coverage
The dwelling policy provides property coverage for the
dwelling and its contents. Many of the coverages found in the
dwelling policy are found in the homeowners policy, but there
are some differences. The dwelling policy tends to provide
narrower coverage than the homeowners policy. The insured under
the dwelling policy is the named insured and the spouse, if a
resident of the same household. The DP-03 dwelling policy form
is the broadest and provides coverage for the dwelling, other
structures, personal property, fair rental value and additional
living expenses. In addition to these coverages, the policy
provides additional coverages for reasonable repairs, property
removed, fire department service charges, debris removal and
coverage for trees, shrubs, and other plants. The dwelling forms
do not provide coverage for liability, theft, or medical
payments. However, such coverages are available through a
personal liability supplement endorsement and a theft
endorsement.
Dwelling
This amount of insurance applies to the dwelling described in
the policy and any attached structures. Building equipment and
outdoor equipment used for servicing of the building and located
on the described premises is also covered.
Other Structures
This coverage applies to detached structures such as a garage
or storage shed. The limit of insurance coverage is set at 10%
of the dwelling limit for loss to other structures.
Personal Property
This coverages applies to personal property that is usual to
the occupancy of a dwelling. The coverage applies to personal
property owned or used by the insured or resident family
members, while the property is on the described location. The
limit of insurance for this coverage is chosen by the insured.
Fair Rental Value
Under the broad and special dwellings forms, coverage is
provided for fair rental coverage for that part of the residence
premises that is rented or held for rental to others. If a loss
occurs under coverage A that makes that part of the premises
unsuitable for living, this coverage would pay the lost rental
value. The limit of insurance is 10% of the dwelling limit. Fair
rental value is the amount of rent that could reasonably be
charged for the premise.
Additional Living Expense
Under the broad and special dwellings forms, coverage is
provided for additional living expenses in the event of a loss
under Coverage A. If the insured was to temporarily lose use of
the dwelling, this coverage would apply and payment could be
made for expenses incurred to live elsewhere following a loss
that makes the dwelling unsuitable for living.
Deductible
The dwelling policy has a standard deductible of $250.
Endorsements
Personal Liability Supplement
Liability coverage is not automatically included in
dwelling policies, however, coverage is available by adding a
personal liability supplement to the policy. Liability
coverage can be added for a residence premise as long as the
insured resides in at least one of the family units; the
residence premise can be a three or four family dwelling. The
limit of liability is $100,000 per occurrence. Coverage is
provided for bodily injury and property damage. Medical
payments coverage is also included in the liability
supplement. The limit for medical payments is $1,000 per
person, the coverage will pay the necessary medical expenses
for bodily injury of others when caused by action of the
insured.
Residential Theft Coverage Endorsement
Theft coverage is not automatically included in dwelling
policies, however, coverage may be added with a broad theft
coverage endorsement or a limited coverage endorsement. The
limited theft coverage endorsement is available for dwellings
that are not owner-occupied. The broad theft endorsement is only
available to owner-occupied dwellings, and can apply to on and
off premise theft. Both endorsements provide coverage for theft,
attempted theft, and vandalism or malicious mischief as a result
of theft. Special limits apply to certain personal property, and
certain property is excluded on both endorsements.
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