DP 04 72–BROAD THEFT COVERAGE

(January 2024)

This optional endorsement fills a significant coverage gap that exists in the DP 00 01, DP 00 02, and DP 00 03 dwelling property policies. All of these forms exclude theft losses to personal property.

Coverage

The form protects personal property under a DP 00 01, DP 00 02, or DP 00 03 against:

· Theft - including damage caused during an attempt at theft.

Example: Jake's rental property is covered by a DP 00 02 policy that is modified with a DP 04 72–Broad Theft Coverage Form. Jake decides to check on his rental since he knows the family who occupies the home is on an extended vacation. As soon as Jake nears the home, he notices that something is wrong. The front door's special security lock and frame are destroyed. Entering the rental, he notices that the new stove and refrigerator he had just installed are gone. The endorsement will cover the appliance theft as well as the theft-related loss to the door and frame.

· Vandalism or malicious mischief - again the coverage is for losses that are connected to theft since other V&MM damage is covered by the three dwelling policies. IMPORTANT: Like the policies, there is no coverage for losses that occur when the described location has been vacant for 60 or more days before the time of loss.

· Automatic Removal Coverage - protects covered property for up to 30 days from the time that such property is being moved to a new location.

Definitions

The form defines the following as applying to the coverage described by the endorsement:

· Business - referring to a profession, occupation, or trade. In other words, activities that are performed for income.

· Insured - referring to the person named on the dwelling policy and residents in the household. However, the residents must be either relatives or must be persons younger than 21 who are in the policyholder’s care or in the care of a resident relative. Relatives who were residents of the household but moved to attend school remain insureds until they turn 24. A person who is not a relative but is under the care of the named insured or a resident relative and was part of the household until they left for school remain insureds only until the age of 21.

· Residence Employee - referring to a person, hired by the policyholder and whose job is connected to maintaining or using the location described in the policy declarations. Employees also qualify for coverage if they perform similar duties away from the described location, but their duties cannot be connected to any “business” activity.

Coverage Limits

The form offers different levels of coverage for on-premises and off-premises coverages. The limits of liability shown for the liability coverages are the maximums that are available for any single, covered loss.

On-Premises

In order to qualify for ON-PREMISESS coverage, the covered property must be located at one of the following:

· At the described location that is occupied by an insured

· In other parts of the described location as long as that portion of the location is used or owned by an insured or if it is owned by a residence employee

· At a bank, safe deposit company, public warehouse, or an occupied dwelling. However, such a dwelling may not be owned, occupied, or rented by an insured.

Off-Premises

In order to qualify for OFF-PREMISESS coverage, the covered property must be away from the described location. Further, the property must either be owned or used by an insured or owned by a residence employee.

Note: Coverage for a resident employee’s property exists ONLY if the property is located at a premises that is occupied by an insured OR while the resident employee is performing duties connected with his or her job. Further:

· No Off-Premises coverage applies unless On-Premises coverage has been purchased.

· Off-Premises coverage is unavailable once property has been moved to a new permanent residence.

Automatic Removal Coverage

If the insured should move to a new primary residence during the policy period, for 30 days from the beginning of the move, this form’s On-Premises limits will apply to eligible property at both locations. The coverage will also exist for property during transit. At the end of 30 days, coverage no longer exists for the old location.

Special Limits of Liability

The form has a number of sub-limits that apply to covered personal property. The sub-limits do not affect the overall limits of liability that are shown for either On-Premises or Off-Premises coverage. The sub-limits are as follows:

· $200 on money, bank notes, bullion and precious metals, and coins. However, this limit does not apply to goldware or silverware.

· $1,500 on securities, accounts, debt instruments, letters of credit and similar property

· $1.500 on watercraft, trailers, accessories, and outboard motors

· $1,500 on all other types of trailers

· $1,500 on jewelry, watches, furs, and precious stones

· $2,500 on firearms (and equipment)

· $2,500 on silver, pewter, or gold (including plated) eating utensils, serving sets and trophies.

Exclusions

There are a number of classes of property that are excluded from coverage under the Broad Theft Coverage Form. Specifically, no coverage is provided for:

· Aircraft, including parts and equipment

· Hovercraft, including parts and equipment

· Vehicles except for ones not subject to registration AND used to either service the described location or assist handicapped persons

· Goods used as samples or for sale

· Any business property

Example: Melanie reports a theft loss. She returned home after a lunch date with friends and found her backdoor lock smashed. She reports a loss of $1,500 to her insurer, including $800 in hand made dolls. Her insurer denies the loss to the dolls when it finds out that they were inventory belonging to her in-home doll and craft business.

· Animals, birds, or fish

· Property belonging to tenants, roomers, or boarders (who are NOT related to an insured)

· Credit or fund transfer cards

· Property which is separately insured

· Property that is at another location which is not occupied by an insured, that is in the hands of a bailee or while it is being mailed

Example: Connie is upset when she receives notice from her insurer that the theft of her electric gardening cart is not covered. She argues with the company since her DP 00 02 form includes the DP 04 72–Broad Theft Form. The insurance company explains further that the loss is ineligible because the cart was at a shop for repairs and the theft occurred at that shop. In this theft, the bailee is responsible for the loss.

Conditions

Finally, the Broad Theft Coverage form modifies items 4 and 9 of the Conditions section of the DP 00 01, DP 00 02, or DP 00 03. First, in case of a theft loss, the insured is obligated to notify the police. Second, in the event that other insurance applies to any covered property, the coverage provided by this endorsement is limited to its proportional share of the total existing coverage. Existing coverage includes protection provided by a service contract or similar agreement.

This form would also apply in the manner discussed above to a DP 00 08, Modified Loss Settlement Form policy.