DP 04 73–LIMITED THEFT COVERAGE

(January 2024)

The Limited Theft Coverage form provides coverage against the perils of theft (including theft attempts) and vandalism and malicious mischief as a result of theft. However, this endorsement only provides on-premises protection. The form also contains special limits of liability which apply to certain, high-valued, classes of 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

· 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.

Note: 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.

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. The term includes the definition of business activity used in the 2002 edition of the Dwelling Property Program forms. Therefore, depending upon circumstances, many part-time activities that involve significant compensation qualify as "business."

· 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.

Limits of Liability

The form offers coverage for covered property while it is located on-premises. The limit of liability shown for this coverage is the maximum that applies to any single, covered loss.

Example: Minnie's home is insured under a DP 00 03–Dwelling Property 3 - Special Form with DP 04 73–Limited Theft Coverage attached. One day she is upstairs reading and she hears a couple of loud crashes downstairs. She leaps up from her chair and rushes to investigate. When she gets downstairs, she sees that a locked, glass-door cabinet was smashed and several pieces of porcelain statuary are missing. This loss is eligible for theft coverage.

Example: Minnie's home is insured under a DP 00 03- Dwelling Property 3 - Special Form with DP 04 73–Limited Theft Coverage attached. One day she gets a call from John who is handling their neighborhood's annual Cook-out and Garage Sale. John tells Minnie that several pieces of the dining set that she had asked John to sell at the event were stolen. This loss, occurring away from Minnie's home, is ineligible for theft coverage.

On-Premises

In order to qualify for ON-PREMISES coverage, the covered property must meet one of the following criteria:

· Located at the described location and be owned or used by an insured

· Located at the described location and be 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 the named insured.

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 limit of liability shown for On-Premises coverage. The sub-limits are as follows:

· $1,500 on watercraft, trailers, accessories, and outboard motors

· $1,500 on all other types of trailers

· $2,500 on firearms

Exclusions

There are a number of classes of property that are excluded from coverage under the Limited 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

· 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

· Losses caused by tenants, roomers or boarders or caused by a member of a tenant’s household or a tenant’s employee

· Money, bank notes, bullion and precious metals and coins including silver or gold (including plated) eating utensils, serving sets and trophies

· Securities, accounts, debt instruments, letters of credit and similar property

· Jewelry, watches, furs, and precious stones

Conditions

Finally, the Limited Theft Coverage form modifies a couple of items in 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. If service agreement is in place (not other insurance) for any stolen item, the coverage provided by this form is excess over whatever amount is available under that agreement.

Example: Felix's home is insured under a DP 00 03–Dwelling Property 3 - Special Form with DP 04 73–Limited Theft Coverage attached. He comes home to discover that someone broke into his garage. All the family’s bikes have been stolen. He files a claim for the theft. When his insurer discovers that Felix has a buyers protection plan on the bikes, it pays only the amount of the loss that is in excess of that plan.