Personal Lines Insurance - Chapter 4

Coverage E - Additional Living Expense

***Named insured residing in structure -Like Coverage D, Coverage E provides insurance for indirect losses that occur as a result of direct losses to property insured under Coverages A, B, or C that are covered by the policy. Coverage E is automatically included in the DP-2 and DP-3 forms; it's not included in the DP-1 form. -The policy pays any necessary increases in living expenses incurred by the named insured when a covered loss makes the unit in which the named insured lives uninhabitable. Payment is made only to the extent the insured's household can maintain its normal standard of living. -The Coverage E limit of insurance is up to 20% of the Coverage A limit and is additional coverage. Examples of expenses paid by Coverage E are the costs of a motel room, boarding pets, and dining out.

Coverage D - Fair Rental Value

***RENTERS -Coverage D provides insurance for indirect losses that occur as a result of direct losses to property insured under Coverages A, B, or C that are covered by the policy. -The policy pays the fair rental value of that part of the described location that is rented to others, or held for rental to others, at the time of a loss IF the rental unit is unfit for its normal use because of a direct loss covered by the policy. -Payment will be made for the shortest time necessary to repair the damaged portion of the dwelling that's normally held for rental. A deduction is made for any continuing expenses - meaning expenses that would continue without regard to whether the unit can be occupied (e.g., electric bills or the mortgage payment). -If a civil authority prevents the insured from using the dwelling because a neighboring location was directly damaged by peril that is insured by the insured's policy, the fair rental value will be paid for no more than 2 weeks. -Cancellation of a lease is not covered. -The Coverage D limit of insurance is up to 20% of the Coverage A limit and is automatically provided under each of the dwelling forms. In the case of a DP-1, this limit does not increase the amount of insurance provided by Coverage A. The DP-2 and DP-3 forms provide additional insurance.

Selected Endorsements

-Automatic Increase in Insurance Endorsement (DP 04 11) -Broad Theft Coverage Endorsement (DP 04 72) -Dwelling Under Construction Endorsement (DP 11 43) -Personal Liability Supplement

Other Coverages

-Debris Removal -Improvements, Alterations, and Additions -World-Wide Coverage -Reasonable Repairs -Property Removed -Trees, Shrubs, and Other Plants -Fire Department Service Charge -Collapse -Glass or Safety Glazing Material -Ordinance or Law

Fire Department Service Charge Coverage

1. Under each of the dwelling forms, the policy will pay up to $500 for the named 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 an insured peril. Coverage does not apply if the property is located within the limits of the city, municipality, or protection district furnishing the fire department response. 2. Essentially, coverage is provided for services provided by an assisting fire department. 3. This is additional insurance and the policy deductible does not apply.

Automatic Increase in Insurance Endorsement (DP 04 11) EXAMPLE

A dwelling policy is issued January 1 with a dwelling coverage limit (Coverage A) of $200,000. The policy has an Automatic Increase/Inflation Guard endorsement for 5%. If a loss occurs 6 months later, the amount of coverage is now $205,000. The annual increase would be $10,000 for the year, therefore, the increase for 6 months is $5,000. When the policy renews, the increased dwelling coverage becomes $210,000 and the 5% inflation protection will be based on the increased limit (not $200,000) for the following year.

Coverage A

A: walls and roof A-frame home

Coverage B

B - Backyard Any structure on property NOT connected to the main building covered under A. COVERAGE is automatically 10% of A. *Deducted from A's total.

Dwelling Coverages

Coverage A- DWELLING Coverage B- Other Structures on Property Coverage C- Personal Property (Belongings) Coverage D- Fair Rental Value (Renters) Coverage E- Additional Living Expenses (If Insured is living in structure)

Dwelling Policy-3 Special Form (DP-3)

Coverage for the dwelling and other structures is provided on an open perils basis, meaning coverage is provided for all causes of loss except for those perils specifically excluded. ***Theft of property that is part of the dwelling or other structures IS covered as long as the dwelling or other structures have not been vacant for more than 60 days. Theft of contents is still excluded unless coverage has been added by an endorsement. ***Personal property is covered for the Broad Form DP-2 named perils. ***Losses to the dwelling and other structures are paid on a replacement cost basis (RC). ***Losses to personal property contents are paid on an actual cash value (ACV) basis to the insured.

Falling Objects (DP-2)

Damage to the exterior of the building must take place of coverage to apply to contents inside the building.

Smoke Peril

Does not include loss caused by smoke from agricultural smudging or industrial operations.

Earth Movement Exclusion

Earthquake, including land shock waves or tremors before, during or after a volcanic eruption; landslide; mudslide or mudflow; subsidence or sinkhole, earth sinking, rising, or shifting. Coverage is excluded whether the earth movement is caused by human, animal, or natural forces. If a direct loss by fire or explosion ensues from earth movement, it is covered.

Mobile Homes

Eligible for Basic Form of Dwelling Policy Coverage under DP-1. ONLY ELIGIBLE if they are permanently affixed to the foundation.

Personal Liability Supplement Exclusions:

Expected or intended injury Business Professional services War Communicable disease Sexual molestation Corporal punishment Physical or mental abuse Controlled substance

Water Damage Exclusion

Flood, surface water waves, tidal water, overflow of a body of water, water or waterborne material that backs up through sewers or drains or overflows from a sump or sump pump, water or waterborne material below the surface of the ground--including water that exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool, or other structure (such as basement walls). If a direct loss by fire or explosion results from water damage, it is covered.

DP-3 Exclusions

In addition to the policy's General Exclusions, the DP-3 specifically excludes the following losses under Coverages A and B: Collapse, except for coverage provided by Other Coverages. Freezing, thawing, or weight of water or ice on patios, fences, swimming pools, foundations, piers, docks, retaining walls, etc. Theft of property not part of a covered building or structure. Theft in or to a dwelling or structure UNDER CONSTRUCTION. Wind, hail, ice, snow, or sleet to outdoor radio and TV antennas & aerials, trees, shrubs, plants, and lawns. Vandalism and Malicious Mischief (VMM), theft or attempted theft, and any ensuing loss if the dwelling has been vacant for more than 60 consecutive days immediately before a loss. Constant or repeated seepage or leakage of water or steam over a period of time from within a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or household appliance - these systems and appliances do NOT include sumps, sump pumps, mold, fungus, or wet rot unless resulting from accidental discharge or overflow of water or steam and is hidden from view. Any of the following: wear and tear; deterioration; mechanical breakdown; smog, rust, or corrosion; smoke from agricultural smudging or industrial operations; pollution; settling, cracking, bulging, or expansion of foundation, walls, floors, pavement, or patios; and birds, vermin, rodents, insects, or domestic animals.

Ordinance or Law Exclusion

Increased costs due to the enforcement of any ordinance or law regulating the use, construction, demolition, remodeling, renovation, or repair of property - including removal of debris. Under the DP-2 and DP-3 forms, this exclusion doesn't apply to the Other Coverage, Ordinance or Law.

Intentional Loss Exclusion

Loss arising out of any act committed by or at the direction of the named insured or any additional insured, with the intent to cause a loss. Coverage is excluded for any insured committing the intentional loss, even those who did not commit or conspire to commit the act that causes the loss.

Accidental Discharge or Overflow of Water or Steam (DP-2)

Must occur from within a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or household appliance. ***This does NOT apply to constant or repeated seepage or leakage over a period of time or if the dwelling was vacant 60 or more consecutive days immediately before a loss.

Freezing Peril

Must occur to a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or household appliance. Applies ONLY if the insured used reasonable care to maintain heat in the building OR shut off the water supply and drained all systems of water.

Sudden and Accidental Tearing Apart, Cracking, Burning, or Bulging (DP-2)

Must occur to a steam or hot water heating system, air conditioning system, or automatic fire protective system, or household appliance.

Dwellings on Farms

Not eligible for Dwelling Policy (DP) coverage.

DP General Exclusions

Ordinance or Law Earth Movement Water Damage Power Failure Neglect War Nuclear Hazard Intentional Loss Non-concurrent Exclusions

Dwelling Policy

Primarily used to insure personally owned residential dwellings containing one to four units that are either not eligible for coverage under a homeowners policy or occupied by a tenant. It can be owner or tenant occupied and may also be occupied on a seasonal or secondary basis.

Coverage Example

The Coverage A limit on an insured dwelling is $100,000. In a DP-1, a detached garage would be covered for up to $10,000; however, the most the policy would pay for loss to both the dwelling and garage is $100,000. Under the DP-2 and DP-3 forms, the garage would be covered for up to $10,000 and this would be in addition to the $100,000 of coverage provided for the dwelling.

DP-1 Basic Form

The MOST BASIC coverage for dwellings. Perils insured against are FIRE, LIGHTNING, and INTERNAL EXPLOSION.

Power Failure Exclusion

The failure of power or other utility service if it takes place off the described location. Power failure occurring on the described location is covered.

Non-concurrent Exclusions

The following exclusions apply, however, if an ensuing loss is otherwise covered by the policy, it will not be excluded: weather decisions; acts or decisions, including the failure to act or decide, of any person, group, organization, or governmental body; faulty, inadequate, or defective planning, zoning, development, surveying, sighting, design, workmanship, repair, construction, renovation, remodeling, grading, compaction, materials used in repair, and maintenance.

Neglect Exclusion

The insured's neglect to use all reasonable means to save and preserve property at and after the time of a loss.

Ordinance or Law Coverage

This an additional coverage for DP-2 and DP-3. It applies to increased costs incurred by the named insured due to the enforcement of any ordinance or law that requires or regulates the construction, demolition, remodeling, renovation, or repair of a covered building or structure because of a covered loss. 1. Up to 10% of the Coverage A limit of liability may be used for this coverage and, if the insured is a tenant, up to 10% of the limit of insurance that applies to improvements, alterations, and additions may be used. 2. Some or all of the limit of insurance for this coverage may be used to pay for the increased costs incurred by the named insured to remove debris resulting from the construction, demolition, remodeling, renovation, repair, or replacement of covered property. 3. NO coverage is provided for any loss in value of a building or structure due to the enforcement of any ordinance or law or costs incurred by ordinances that require pollution clean up, removal, treatment, etc. 4. This is ADDITIONAL INSURANCE.

Weight of Ice, Snow, or Sleet (DP-2)

This does NOT apply to awnings, patios, pavements, pools, etc.

Damage by Burglars (DP-2)

This does not include theft coverage nor does it apply if the dwelling was vacant 60 or more consecutive days immediately before a loss. ***Includes damage to the covered property caused by the burglar, but not theft of property.

Dwelling Under Construction Endorsement (DP 11 43)

This endorsement is needed because eligibility for the dwelling property coverage requires insured dwellings to be occupied for residential purposes. Dwellings under construction are not occupied and, when this endorsement is added, the named insured agrees to advise the insurer when construction is completed. 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 at any time prior to completion is a percentage of the Coverage A limit that equals the proportion the actual value bears to the value on the date of completion. Once the construction is completed, the named insured must notify the insurer to obtain consent to occupy the dwelling and to adjust the policy premium. Occupancy of the building under Coverage A, as a dwelling, is permitted for 30 days after completion.

Sudden and Accidental Damage from Artificially Generated Electrical Current (DP-2)

This peril is caused by man-made electricity or power surge and does NOT apply to damage to tubes, transistors, electronic components, or circuitry contained in appliances, fixtures, computers, etc.

Dwelling

Used Principally for residential dwelling purposes (secondary/rental). Cannot have more than 4 dwelling units or more than 5 roomers/boarders.

War Exclusion

War includes undeclared war, civil war, insurrection, rebellion, revolution, or any warlike act by a military force. The discharge of a nuclear weapon will be deemed a warlike act, even if accidental. War also includes any consequence of the preceding.

Extended Coverage (EC)

Windstorm Hail Explosion Riot or civil commotion Aircraft Vehicles Smoke Volcanic eruption ***If purchased, MUST appear on the declarations.

Incidental Business Occupancies

_______ _______ occupancies are permitted, such as beauty shop, professional office, music lesson studio, schools, etc., if the primary use of the dwelling is as a personal residence.

Under the DP-2 and DP-3 forms, the Coverage B limit is:

additional insurance.

Trees, Shrubs, and Other Plants is:

an additional coverage that provides insurance at a limit of up to 5% of the Coverage A limit, with a maximum of $500 for any one tree, shrub, or plant.

The Automatic Increase in Insurance Endorsement is used to provide,

at the annual renewal date of the policy, an automatic increase in the Coverage A and B limits of insurance to help offset inflation.

To be eligible for the dwelling property program, dwellings must:

be used principally for residential purposes, cannot contain more than 4 dwelling units, and can have no more than 5 roomers or boarders.

Vandalism or Malicious Mischief (VMM)

covers loss or damage to property from willful and malicious destruction of the insured property. May also be included with the payment of an additional premium. If purchased, MUST appear on the declarations. ***Losses to the dwelling, other structures, and contents are paid on an actual cash value basis.

War, nuclear hazard, and intentional loss are:

excluded under all the DP policies.

The DP-1 Basic Form perils are:

fire or lightning and internal explosion. If an additional premium is paid for Extended Coverage (EC), the following perils are also included: windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, and volcanic eruption. The peril of vandalism or malicious mischief (VMM) may also be included with the payment of an additional premium.

Water Damage is excluded and includes:

flood, surface water waves, tidal water, overflow of a body of water, water or waterborne material that backs up through sewers or drains or overflows from a sump or sump pump, water or waterborne material below the surface of the ground - including water that exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool, or other structure (such as basement walls).

Coverage C applies to:

household and personal property usual to the occupancy as a dwelling if it is owned by the insured or by members of the insured's family who reside with the insured.

Under the DP-1, the Coverage B limit does not:

increase the amount of insurance.

Coverage D provides insurance for:

indirect losses that occur as a result of direct losses to property insured under Coverages A, B, or C that are covered by the policy.

The Broad Theft Coverage endorsement provides:

insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. It may only be added to policies insuring owner occupied dwellings.

Damage from power failure that takes place away from the insured premises:

is excluded under the Dwelling forms.

Earth Movement is excluded, including:

land shock waves or tremors before, during or after a volcanic eruption; landslide; mudslide or mudflow; subsidence or sinkhole, earth sinking, rising, or shifting.

Losses to the DP-1 dwelling, other structures, and contents are paid:

on an actual cash value basis to the insured.

The Personal Liability endorsement provides:

overage for personal liability and medical payments to others and may be added to any of the dwelling forms of coverage.

The Property Removed additional coverage covers:

property against direct loss for all perils while being removed from the described location because the property at the described location is endangered by an insured peril.

Accidental discharge or overflow of water or steam is covered only by:

the Broad and Special forms. Other kinds of water damage, such as flood or sump pump backup, are excluded on all Dwelling forms.

The Worldwide Coverage Other Coverage allows 10% of:

the Coverage C limit of insurance to apply to personal property while it is away from the premises.

The DP-2 Broad Form perils are:

the DP-1 perils, the EC perils, VMM, and the following: damage by burglars, falling objects, weight of ice, snow, or sleet, and accidental discharge or overflow of water or steam.

Coverage for the peril of collapse is only provided under:

the DP-2 and DP-3 forms. Coverage is provided for direct physical loss to covered property involving collapse of a building or any part of a building.

The Coverage A limit of insurance appears on:

the declarations as a specific limit. It is chosen by the named insured at the time coverage is applied for and should represent the dwelling's replacement value.

The DP-3 Special Form covers:

the dwelling and other structures on an open perils basis, except for the perils specifically excluded.

Ordinance or Law is excluded and is:

the increased costs due to the enforcement of any ordinance or law regulating the use, construction, demolition, remodeling, renovation, or repair of property - including removal of debris.

The Dwelling under Construction endorsement provides:

the insured an average amount of insurance for Coverage A during the course of a dwelling's construction.

Neglect is excluded and is defined as:

the insured's neglect to use all reasonable means to save and preserve property at and after the time of a loss.

The additional coverage Debris Removal pays:

the insured's reasonable expenses for the removal of debris of covered property if the property is damaged by an insured peril.

The additional coverage Reasonable Repairs pays:

the reasonable costs incurred by the insured for necessary measures taken to protect covered property from further damage.

The additional coverage Improvements, Alterations, and Additions pays a tenant:

up to 10% of the Coverage C limit for improvements made or acquired at the insured's expense to that part of the described location he or she rents.

The Coverage D limit of insurance is:

up to 20% of the Coverage A limit and is automatically provided under each of the dwelling forms.

Coverage C - Personal Property

-Coverage applies to household and personal property usual to the occupancy as a dwelling if it is owned by the insured or by members of the insured's family who reside with the insured. Coverage only applies while insured property is located at the described location. After a loss and at the insured's request, Coverage C will also apply to personal property of a guest or servant while located on the described location. Personal property of a tenant or boarder is not covered. -Coverage also automatically applies to personal property the insured removes from the location to a newly acquired principal residence for 30 days or until policy expiration, whichever occurs sooner. Otherwise, coverage is not provided for personal property located off the described location. -Property not covered includes: accounts, bank notes, coins and currency; birds, animals, and fish; aircraft and watercraft other than rowboats or canoes; motor vehicles other than those used to service the described location or to assist the handicapped; hovercraft; data, including books of account, drawings, paper records, computers and their equipment; credit cards, funds transfer cards, and other access devices; water or steam; and grave markers. -As a coverage giveback, the insured may use up to 10% of the Coverage C limit of insurance for loss caused by an insured peril to covered property anywhere in the world.

Coverage A - Dwelling

-DWELLING described in the declarations - used principally for residential purposes. Includes structures attached to the dwelling, such as an attached garage, carport, breezeway, or deck. -Also includes materials and supplies on or next to the described location used to construct, alter, or repair the dwelling/other structures at the described location. -Unless otherwise covered in the policy, building equipment and outdoor equipment used to service the described location is considered part of the dwelling IF such property is located on the described location. -NO COVERAGE applies to land, including land on which the dwelling is located. -Coverage A limit of insurance appears on the declarations as a specific limit. It is chosen by the named insured at the time coverage is applied for and should represent the dwelling's replacement value. -Neither Coverage A nor B insure damage caused by wind, hail, ice, snow, or sleet damage to outdoor radio and television antennas and aerials, including their lead-in-wiring.

Collapse Coverage

1. "Collapse" is defined as the abrupt falling down or caving in of a building, or any portion of a building, but only if it cannot be occupied for its current intended purpose. If a building, or any portion of a building, is in danger of falling down or caving in - or if it's standing, it is NOT in a state of collapse. 2. Under the DP-2 and DP-3 forms, coverage is provided for direct physical loss to covered property involving collapse of a building, or any part of a building, but only if the cause of loss is: any of the Coverage C named perils; hidden decay; hidden insect or vermin damage; weight of contents, equipment, animals or people; weight of rain which collects on the roof; and use of defective materials or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling, or renovation. 3. Collapse does not include settling, cracking, shrinking, bulging, or expansion. 4. This coverage does not increase the limit of insurance and is NOT provided by the DP-1.

Automatic Increase in Insurance Endorsement (DP 04 11)

1. An automatic pro rata increase in the Coverage A and B limits of insurance is applied by the percentage shown on the endorsement. This endorsement is used to help offset inflation and may also be referred to as the Inflation Guard Endorsement. 2. The increases are calculated per day, and will increase the dwelling coverage, as well as the premium, annually when the policy renews. If a loss occurs throughout the year, coverage is based on a pro-rated basis.

Reasonable Repairs Coverage

1. If covered property is damaged by an insured peril, the policy will pay the reasonable costs incurred by the named insured for necessary measures taken to protect covered property from further damage. 2. This is not additional insurance and coverage does not increase the limit of insurance that applies to the covered property.

Property Removed Coverage

1. If property is being removed from the described location to protect it because it is endangered by a covered peril, coverage is provided for direct loss by any peril while removed. Under the DP-1 form, coverage is provided for 5 days while removed; under the DP-2 and DP-3 forms, coverage is provided for 30 days while removed. 2. This coverage does not increase the limit of insurance that applies to the property being removed.

Improvements, Alterations, and Additions Coverage

1. If the insured is a tenant, he or she may use up to 10% of the Coverage C limit of insurance for a covered loss to improvements, alterations, and additions made or acquired at the insured's expense to that part of the described location only occupied by the named insured. 2. In the DP-1 form, coverage is included in the limit of insurance; in the DP-2 and DP-3 forms, it's additional insurance.

World-Wide Coverage

1. The insured may use up to 10% of the Coverage C limit of liability for a covered loss to property insured under Coverage C while it's located anywhere in the world. 2. This coverage does NOT apply to rowboats, canoes, or property owned by guests or servants. 3. This coverage is included in the Coverage C limit of liability.

Debris Removal Coverage

1. The policy pays the insured's reasonable expenses for the removal of debris of covered property if the property is damaged by an insured peril. 2. Debris removal expense is included in the limit of insurance that applies to the damaged property.

Glass or Safety Glazing Material Coverage

1. Under the DP-2 and DP-3 forms, coverage is provided for the breakage of glass or safety glazing material if it is part of a covered building, storm door, or storm window. 2. Coverage is provided for direct loss caused by earth movement and the pieces, fragments, or splinters of broken glass from the glass or safety glazing material. 3. No coverage applies if the dwelling was vacant for 60 consecutive days immediately before the loss. The vacancy provision doesn't apply to losses caused by earthquake. 4. Loss for damage to glass will be settled on the basis of replacement with safety glazing materials when required by ordinance or law. 5. Coverage doesn't increase the limit of liability and is NOT provided by the DP-1 form.

Trees, Shrubs, and Other Plants Coverage

1. Under the DP-2 and DP-3 forms, coverage is provided for trees, shrubs, plants or lawns on the described location for loss caused by the following perils: fire or lightning; explosion; riot or civil commotion; aircraft; vehicles not owned by the named insured or by a resident of the described location; vandalism or malicious mischief; and damage caused during a burglary or an attempted burglary. This coverage is not included in the DP-1 form. 2. Damage to trees, shrubs, plants, or lawns caused by the following perils are not covered: wind; hail; weight of snow, ice or sleet; and loss by theft. 3. The limit of insurance for this coverage is up to 5% of the Coverage A limit, with a maximum of $500 applying to any one tree, shrub, or plant. 4. This is ADDITIONAL COVERAGE.

Nuclear Hazard Exclusion

Any nuclear reaction, radiation, or radioactive contamination—whether controlled or uncontrolled—except that fire resulting from the nuclear hazard is covered.

Coverage B - Other Structures

Applies to other structures on the described location if they are separated or detached from the dwelling by clear space, a fence, or a utility line EX: detached garage, shed, pool, outdoor storage building. -NO COVERAGE provided for structures rented to others who were not a tenant of the dwelling before residing in the other structure. -An exception applies if the structure is rented solely as a private garage. -Coverage is NOT PROVIDED for land. -No coverage is provided for other structures used in whole or in part for commercial, manufacturing, or farming purposes. However, if other structures used for such purposes only store property owned solely by the named insured or a tenant of the dwelling, coverage will apply provided the property doesn't include any gaseous or liquid fuel located other than in a vehicle's fuel tank. -The Coverage B limit of insurance is up to 10% of the Coverage A limit and is automatically provided under each of the dwelling forms. In the case of a DP-1, this limit does not increase the amount of insurance provided by Coverage A. The DP-2 and DP-3 forms provide additional insurance. -Neither Coverage A nor B insure damage caused by wind, hail, ice, snow, or sleet damage to outdoor radio and television antennas and aerials, including their lead-in-wiring.

Broad Theft Coverage Endorsement (DP 04 72)

Because none of the dwelling forms include theft coverage, one of two endorsements must be used if the named insured wishes to have coverage for the peril of theft. The Broad Theft Coverage endorsement may be added to any of the dwelling forms IF the described location is owner occupied. If the dwelling is tenant occupied, the Limited Theft Coverage endorsement must be used. 1. Broad Theft Coverage - Provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. -No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss. -On-premises coverage is provided for covered property located at the described location occupied by an insured. -Off-premises coverage is provided when covered property is away from the described location; however, the property must be owned or used by an insured or residence employee. 2. Limited Theft Coverage - Provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. -No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss. -On-premises coverage applies when covered property is owned or used by the named insured or a residence employee and is at the described location.

Personal Liability Supplement

Because the dwelling forms only provide property coverage, if personal liability coverage is desired, coverage must be secured under another policy or an endorsement must be attached to the dwelling policy. 1. The Personal Liability endorsement contains its own Definitions section and provides Coverage L - Personal Liability and Coverage M - Medical Payments to Others. 2. Personal liability coverage applies to claims made or suits brought against an insured for damages because of bodily injury or property damage caused by an occurrence to which the policy applies. Payment will be made up to the limit of liability appearing on the declarations for which an insured is legally liable. Coverage is also provided for defense in addition to the limits of liability. 3. Medical payments to others coverage applies to claims for the necessary medical expenses incurred or medically ascertained within 3 years from the date of an accident causing bodily injury to which the policy applies. a. Medical expenses are reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, and funeral services. b. Coverage does NOT apply to expenses incurred by the named insured or regular residents of the named insured's household except residence employees. c. Coverage applying to others must arise out of injury to a person on an insured location with the insured's permission, or to persons off an insured location if the injury is caused by the activities of an insured or residence employee while in the course of employment by the insured. Also covered are injuries to persons caused by an animal owned by or in the care of an insured or that arise out of conditions on an insured location or ways immediately adjoining it. 4. The endorsement also provides additional coverages for claim expenses, first aid expenses, and damage to the property of others.

Vehicle Peril

Does not include loss to a fence, driveway, or walkway caused by a vehicle owned or operated by the insured

Damage to trees, shrubs, plants, or lawns is:

NOT covered when caused by wind, hail, weight of snow; ice or sleet; or loss by theft.

Dwelling Policy-2 Broad Form (DP-2)

The perils insured against are the DP-1 perils, the extended coverage (EC) perils, vandalism or malicious mischief (VMM), and the following: Damage by Burglars Falling objects Weight of ice, snow, or sleet Accidental discharge or overflow of water/steam Sudden and accidental tearing apart, cracking, burning or bulging Freezing Sudden and accidental damage from artificially generated electric current ***Losses to dwelling/other structures = paid on a replacement cost basis. (RC) ***Losses to personal property are paid on an actual cash value basis (ACV).

Coverage A applies to:

the dwelling described in the declarations, used principally for residential purposes, including structures attached to the dwelling, such as an attached garage, carport, breezeway or deck.

Power Failure is excluded and is:

the failure of power or other utility service if it takes place off the described location. Power failure occurring on the described location is covered.

Coverage B applies to other structures on the described location if:

they are separated or detached from the dwelling by clear space, a fence, or a utility line.

Under each of the dwelling forms, the insurer will pay:

up to $500 for fire department charges incurred when a fire department other than the fire department in the jurisdiction in which the described location is situated is called to save or protect covered property from an insured peril.

The Coverage B limit of insurance is:

up to 10% of the Coverage A limit and is automatically provided under each of the dwelling forms.