Introduction

 ISO's dwelling program was revised in 2014; and many of the changes in the 2002 forms were reflective of the changes incorporated into the 2000 homeowners program, so the homeowners discussions may be referenced for additional information. For this discussion the DP 00 03 07 14 is used.

 The provision that preceded the coverage insuring agreements regarding the deductible has been removed, and now appears in the conditions section. The base deductible is $250; other deductibles are available. The deductible is explained in the conditions discussion.

 Unlike the homeowners forms, the dwelling property forms do not contain an extensive list of definitions. The only definitions are for "you" and "your", referring to the "named insured" shown in the declarations and a resident spouse, and "we", "us", and "our", referring to the insurer. "Named insured" is presented in quotation marks but is not defined.

For a discussion of the covered perils, exclusions and some endorsements see Dwelling Property Forms—Perils, Exclusions, Endorsements.

 Coverage A—Dwelling

 For the most part, the coverage insuring agreements of the dwelling forms parallel the ISO homeowners forms. See ISO Homeowners Section I, for a complete discussion of the ISO homeowners forms and coverages.

 A. Coverage A . Dwelling

 Analysis

 Coverage A—dwelling insures the residential dwelling, any structures attached to it, and materials and supplies on or adjacent to the location that are used for construction, alteration or repair of any structures at the described location. The dwelling property forms contain the statement (also found in the homeowners forms) that the coverage does not apply to land, including the land on which the dwelling is located.

 There is one minor difference between the coverage A insuring agreements of the dwelling and homeowners forms. Dwelling forms contain a provision stating that if building and outdoor equipment used to service the described location is not covered elsewhere in the policy, it is considered part of the coverage A dwelling limit. This is similar to the commercial property form (CP 00 10 10 12) which insures personal property owned by the named insured used to service the building, such as refrigerating, dishwashing, or laundering appliances. However, the dwelling form does not further define building or outdoor equipment, so the broadest interpretation applies, so long as the equipment is used to service and is located on the described location.

 Coverage B—Other Structures

 Coverage B – Other Structures

1.We cover other structures on the Described Location, set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection.

This coverage does not apply to land, including land on which the other structures are located.

2.We do not cover:

a.Land, including land on which the other structures are located;

b.Other structures rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage;

c.Other structures used in whole or in part for commercial, manufacturing or farming purposes.

However, we do cover a structure that contains commercial, manufacturing or farming property solely owned by you or a tenant of the dwelling provided that such property does not include gaseous or liquid fuel, other than fuel in a permanently installed fuel tank of a vehicle or craft parked or stored in the structure; or

d.Gravemarkers, including mausoleums.

Analysis

 The rules make clear that a dwelling policy may be issued to provide insurance under coverage B only for: other structures at the same location as the dwelling eligible for insurance under coverage A, not used for business purposes except a permitted incidental occupancy; an other structure rented for use as a private garage; or at a separate location when used in connection with the insured location, but not for business purposes.

 The forms provide coverage for an other structure used to store commercial, manufacturing, or farming property so long as it is owned by the insured or a tenant of the dwelling. The property cannot consist of stored gaseous or liquid fuel, except for that normally found in a fuel tank of a vehicle or watercraft.

 Gravemarkers and mausoleums are specifically not covered under coverage B unless coverage is added by endorsement ($5,000 is available using endorsement DP 04 58 12 02). The marker must be on the Described location and damaged by a coverage C peril. Settlement is at actual cash value.

 Coverage C—Personal Property

 Coverage C – Personal Property

 Analysis

 Both the dwelling and homeowners programs provide insureds with worldwide coverage of personal property (coverage C) but possess sharply different limitations. Homeowners forms restrict coverage of personal property at a secondary residence to 10 percent of coverage C or $1,000, whichever is greater. Dwelling forms limit all off-premises coverage to 10 percent of coverage C (except there is no coverage for rowboats and canoes off premises, nor is there coverage for property of guests or servants off premises). In addition, if this worldwide extension is invoked on any dwelling policy (the worldwide extension of personal property coverage is found on the dwelling forms in one of the other coverage provisions), the amount of coverage C available for the same loss is reduced by whatever percentage is used for the extension.

 Within the insuring agreement for coverage C on both the dwelling and homeowners forms, insurance is provided for "personal property owned or used" by an insured. The term "used" is broad enough to encompass such exposures as leased or borrowed items. However, the dwelling forms state that the property should be "usual to the occupancy as a dwelling." This statement is lacking in the homeowners form. What is usual to the occupancy as a dwelling could exclude certain types of property if the carrier found them to be not "usual" property, such as jousting lances, for example.

 The dwelling forms cover personal property owned by a guest or servant only while it is on the location described on the declarations. The homeowners form is broader, and covers property of guests and residence employees at any residence occupied by the insured.

 Coverage C—Property Not Covered

 2.Property Not Covered.

 Analysis

 Note that the list of property not covered in the dwelling forms includes many items that are given limited coverage in the homeowners forms, such as money. Dwelling forms do not contain the special limits of liability for certain types of personal property (money, watercraft, trailers, jewelry, firearms, silverware) that are found on homeowners forms. However, coverage for theft of these items may be added by endorsement. See Dwelling Theft Coverage DP 04 73, Limited Theft Coverage or DP 04 72 Broad Theft Coverage. 

 There are other differences between personal property covered by the dwelling forms and that covered by the homeowners forms. First, dwelling forms exclude coverage for all forms of data; homeowners forms exclude only data having to do with business (i.e., the insured's trade, occupation, or profession.) Secondly, dwelling forms exclude coverage for credit cards and fund transfer cards, unlike homeowners forms that contain some coverage for this property as one of the additional coverages. And finally, only rowboats and canoes are covered by the dwelling property forms; all other forms of watercraft are excluded (unless, as mentioned, theft coverage is added for these other types of watercraft by endorsement).

The exclusion for motor vehicles has been changed. While the 2002 form excluded motor vehicles, accessories, equipment and parts, the 2014 form excludes the vehicles, equipment and parts. Accessories are not listed. An exception is made for portable electronic equipment that reproduces, receives or transmits audio, visual or data signals and is designed to be used from the vehicle power source as well as other power sources. Such equipment was excluded in the previous form, as was antennas, tapes, wire, records, discs and other media that could be used with such equipment. The 2014 does not reference these accessories at all in the exclusion.

 The 2014 dwelling forms contain three additional types of property not covered: hovercraft and parts; water or steam; and gravemarkers, including mausoleums. As noted earlier, coverage for gravemarkers may be purchased by endorsement.

 The rules state that a dwelling policy may be issued to provide insurance for personal property in a dwelling, mobile or trailer home eligible under coverage A; or a dwelling with rental apartments including furnishings, equipment and appliances in halls or utility rooms; or any apartment cooperative or condominium unit used as private living quarters of the insured or rented to others.

 Coverages D and E—Fair Rental Value, Additional Living Expense

 D. Coverage D . Fair Rental Value

 Analysis

 Two dwelling form coverages, fair rental value (coverage D) and additional living expense (coverage E), provide compensation if a covered loss renders the residence premises unusable, or if use of the premises is restricted by the actions of a civil authority. Within homeowners forms there is one insuring agreement, loss of use (coverage D), incorporating both of these coverages.

 Dwelling form DP 00 01 provides 20 percent of the coverage A limit (changed from 10 percent in the earlier form) for fair rental value coverage. Payment is restricted to 1/12 of the applicable amount each month, although revisions to this monthly limitation are available to accommodate seasonal rentals. As specified within an other coverage provision, the fair rental value coverage is not considered additional insurance on the DP 00 01; its use reduces the available coverage A limit by the amount paid for the same loss. Additional living expense can be added to the DP 00 01 by endorsement (DP 04 14).

 Forms DP 00 02 and DP 00 03 contain provisions for both fair rental value and additional expense. The limit of 20 percent (changed from 10 percent in the earlier forms) of coverage A applies to both coverages. In contrast to the DP 00 01, though, use of the coverages following a loss does not reduce the coverage A limit.

Homeowners forms, on the other hand, provide additional living expense coverage if the part of the residence premises where the insured resides becomes unusable. If the part of the premises rented to others or held for rental becomes unusable, fair rental value coverage only is available.

Civil authority coverage is also available. This applies when use of the described location is prohibited by local authorities when a neighboring location is damaged by a Peril Insured Against. Coverage applies for only two weeks. For example, the house next door burns and authorities block access to the insured's premises while cleaning up the debris from the house next door.

 Other Coverages

Other Structures: Other Coverages provision 1. sets forth the limit for other structures coverage. Coverage B, as in the homeowners forms, covers applicable other structures for 10 percent of the coverage A limit. The coverage B limit functions as additional insurance in the homeowners program and in dwelling forms DP 00 02 and DP 00 03, but in form DP 00 01, use of the limit reduces the coverage A amount available for the rest of the loss.

 Three of the other coverages on the dwelling forms have already been discussed in conjunction with the respective insuring agreements they modify. Two of them set out limits of liability and conditions for recovery for coverage B (other structures) and coverages D and E (fair rental value and additional living expense). A third provision explains the worldwide insurance extension for coverage C (personal property).

 The remaining other coverages in the dwelling forms are described below. Distinctions between these and the similar coverages in the homeowners forms (additional coverages) are noted.

 Debris Removal: Debris removal coverage on the dwelling forms is limited to the "reasonable expense" of removing debris of covered property resulting from an insured loss or removing volcanic ash, dust, or particles that have caused direct loss to building or personal property. As in the homeowners forms, the volcanic ash, dust or particles must cause the damage directly, not by the insureds attempts to clean up the ash, dust, or particles. The cost of debris removal is included in the limit of liability that applies to the damaged property.

 Debris removal coverage in the homeowners forms provides broader protection. If the limit of liability for the damaged property is exhausted before debris removal costs are paid, an additional five percent debris removal limit is available. Also, a certain amount is available for the cost of removing fallen trees (those not covered by the separate coverage for lawns, plants, shrubs, and trees).

 Improvements, Alterations, and Additions: A named insured who is a tenant may apply 10 percent of the coverage C limit of liability to improvements, alterations, or additions damaged by an insured peril. The improvements, alterations, or additions must have been made or acquired at the named insured's expense to the portion of the premises occupied by the named insured. In form DP 00 01 this coverage is included in (i.e., is not additional to) the limit of liability for coverage C; in forms DP 00 02 and DP 00 03, it is in addition to the available limit for coverage C.

 Endorsement DP 04 31 12 02—Improvements, Alterations, and Additions—expands this coverage to insure the improvements, etc., made or acquired at the expense of the insured, whether the insured location is rented to others or not. This effectively provides protection for improvements that are bought with the purchase of a co-operative apartment or condominium and continues coverage if the unit is subsequently rented. The insurance is on a named peril basis. To change to open perils coverage, special coverage endorsement DP 04 65 07 14 must be attached to the policy. (This endorsement is designed to be used with both DP 04 31 and another named perils form, DP 17 66 07 14—Condominium Unit Owners Coverage—discussed later.)

 In comparison, 10 percent of the coverage C limit applies to additions, alterations, fixtures, improvements, and installations made or acquired by a tenant named insured on the homeowners contents form (form HO 00 04) as an additional limit.

 Reasonable Repairs: This provision is the same in both the homeowners and dwellings forms. 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 covered property. Payment for reasonable repairs is included in the limit of liability applicable to the property being repaired.

 Property Removed: The property removed clause in both the dwelling and homeowners forms specifies that endangered property is insured against "direct loss from any cause" and coverage exists from the time removal of the property begins. In dwelling form DP 00 01, insurance applies for not more than five days while removed; in forms DP 00 02 and DP 00 03 (and in homeowners forms), for not more than thirty days. The coverage does not change the limit of liability applying to the property removed. It's important to note that coverage is for any cause, and not just the covered perils. This means that if the storage facility where the property is stored is flooded, there is coverage, even though the damage wouldn't be covered if the property was damaged by flood while on premises since flood is excluded.

 Lawns, Plants, Shrubs, and Trees: In forms DP 00 02 and DP 00 03, up to 5 percent 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 tree is $500. There is no coverage for the cost of removing tree or plant debris within this additional coverage. Property grown for commercial purposes is excluded. Coverage for windstorm or hail may be added by endorsement DP 04 18 12 02.

 Form DP 00 01 does not have this other coverage, but insurance on plants, shrubs, trees, or lawns can be added through endorsement DP 04 17 12 02 in accordance with rules in the dwelling manual. Coverage for loss caused by windstorm or hail is available as an option under the endorsement. (Coverage for windstorm or hail may also be added to forms DP 00 02 and DP 00 03.)

 In general, homeowners policy provisions for removal of fallen trees are more extensive than those found in the dwelling forms since loss from any coverage C peril not included in this additional coverage entry is picked up under debris removal, as mentioned earlier.

 Fire Department Service Charge: There is no difference between this coverage in dwelling and homeowners forms. Both programs include $500 for fire department service charges as an additional amount of insurance and the limits may be increased. No deductible applies. If the property is located within the limits of a city, municipality or protection district that normally responds, the policy will not cover service charges.

 Collapse: Collapse coverage was added to the broad and special dwelling forms as of the 1989 dwelling program. It is not included in the DP 00 01. Its terms—covering collapse of a building or any part of a building by a list of named perils—are identical to those found on homeowners policies. For a discussion of collapse coverage, see Meaning of Collapse.

 The 2014 form has been reworded for clarity. The coverage provided is the same; coverage for an abrupt collapse, which is: "an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its current intended purpose." This eliminates confusion as to what exactly is a collapse. Before the addition of the definition in the 2002 form, it was left up to interpretation by the courts, some holding that a "heap of rubble" was the intent, and others that structural impairment met the requirement to trigger coverage. Now, the definition should clarify that "heap of rubble" is the intent. Collapse damage from hidden decay or insect or vermin damage is covered, but the decay or damage must not have been known to the insured prior to the collapse. Knowledge of such damage would constitute neglect on the part of the insured.

 Glass or Safety Glazing Material: This additional coverage appears only in the broad and special forms. The coverage has three parts: (1) the breakage of glass or safety glazing material from the perils insured against; (2) the breakage of glass or safety glazing material caused by earth movement; and (3) the direct physical loss to covered property caused by the broken glass (as when fragments scratch a piece of furniture). There is no coverage, however, for any other loss that may result if glass is broken. For example, if a thief breaks a window to gain entrance to the insured premises and then steals furnishings, there is no coverage unless theft coverage has been arranged.

 No additional limit applies to this coverage. The earlier forms stated that losses were settled on the basis of replacement with safety glazing materials where required by law; however, the additional coverage for ordinance or law should respond. Dwellings that have been vacant for over sixty days Fare ineligible for this coverage. Dwellings under construction are not considered vacant. Homeowners forms cover breakage of glass as an additional coverage.

 Ordinance or Law: This coverage was added to the dwelling forms by the 1994 amendatory endorsements, and is now an additional coverage (except in DP 00 01, where it must be added by endorsement). Up to 10 percent of the limit of liability applying to additions, alterations and betterments is available for a tenant of a described location. The owner of a described location may apply up to 10 percent of the coverage A limit of liability. If the owner of the described location is not insured for coverage A, then up to 10 percent of the total limit of liability that applies to coverage B at each described location is available. Additional amounts are available by endorsement.

 In event of a covered loss, this coverage applies to certain increased costs of construction or demolition because of enforcement of any law or ordinance. Loss in value and costs to test for or clean up pollutants are not covered.

 Insuring Condominiums

 Several endorsements are devised for use to adapt dwelling policy coverage to condominiums. For the most part, they correspond to similar coverages within the homeowners program. There is no equivalent condo form as there is an HO 00 06 03 22.

 DP 17 66 07 14, Unit-Owners Coverage amends forms DP 00 01 or DP 00 02 to cover unit-owners building items that are not otherwise covered. This optional named perils endorsement covers: (1) the alterations, appliances, fixtures and improvements which are part of the building contained within the named insured's unit; (2) items of real property which pertain exclusively to the named insured's unit; (3) property which is the named insured's responsibility to insure under a corporation or association of property owners agreement; and (4) structures owned solely by the named insured, other than the described location, on the premises of the described location, so long as they are not used for commercial, manufacturing or farming purposes or are rented out for any use except as a garage. The named perils coverage of the DP 00 02 can be amended to open perils coverage by attaching endorsement DP 04 65 07 14 special coverage.

 Endorsement DP 17 66 also expands coverages D and E, fair rental value and additional expense, to permit policy response if a loss to the building housing the insured condominium unit causes the unit to be uninhabitable. Without this endorsement, the policy only provides coverage if loss to the unit itself occurs.

 Endorsement DP 17 66 also amends the other insurance and service agreement condition. The other insurance provision states that, in event of a covered loss, if there is other insurance in the name of the property owners association that covers the same property, the dwelling property form will be excess "over the amount recoverable."

Losses to unit owners building items are settled on a replacement cost basis if damages are repaired "within a reasonable time;" if not, an actual cash value settlement applies.

 DP 04 63 07 14 loss assessment property coverage provides protection for the occasional assessments made by condominium associations to the unit owners after a loss occurs to commonly owned property within the development. Endorsement DP 04 63 allows an insured to purchase coverage for this exposure and applies a $250 deductible. (A limitation of $1,000 exists if the purpose of the assessment is to recover the amount of a deductible under the association's master policy.) Homeowners form HO 00 06 contains $1,000 of loss assessment coverage within the policy with increases available by endorsement.

 DP 04 68 07 14 loss assessment coverage for earthquake provides that if a loss to commonly owned condominium property occurs caused by earthquake and an assessment of unit owners is made, this endorsement will respond. The deductible is a percentage of the limit of liability, with a $250 minimum.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

Original: May 23, 2016, updated July 2018