1. Forms
2. DL
3. DL-24-01

What the Form Is

The DL 24 01 Personal Liability Supplement is an insurance form developed by ISO that provides crucial liability protection for individuals in conjunction with a dwelling policy. It offers Coverage L - Personal Liability, which pays for bodily injury or property damage for which an insured is legally liable, and Coverage M - Medical Payments to Others, which covers necessary medical expenses for guests injured on the insured's premises, regardless of fault. This form is designed to mirror the liability coverage typically found in Section II of a standard homeowners policy. It can be integrated into a dwelling package policy or issued as a standalone (monoline) personal liability policy when combined with form DL 24 02 (Personal Liability Additional Policy Conditions) and a company-specific declarations page.

Classes of Business It Applies To

The DL 24 01 is primarily used for personal residential exposures, typically for 1-4 family dwellings that may not qualify for a standard homeowners policy or where the insured prefers a separate dwelling policy. This includes:

• Owner-occupied dwellings where the property coverage is written on a Dwelling Property form (e.g., DP 00 01, DP 00 02, DP 00 03).
• Dwellings rented to others (landlord exposures), where the landlord seeks liability protection arising from the ownership of the rental property. For example, if a tenant or a guest of a tenant is injured on the property due to the landlord's negligence.
• Seasonal or secondary homes.
• Dwellings inherited by an insured.

Special Considerations

• Monoline vs. Package: When written as a monoline policy, endorsement DL 24 02 (Personal Liability Additional Policy Conditions) and a company declarations page must be attached. For a package policy, it's typically combined with a dwelling property form and DL 24 03 (Personal Liability Schedule).
• Exclusions: Like all liability forms, DL 24 01 contains various exclusions. Common exclusions include, but are not limited to, liability arising from business pursuits (unless specifically endorsed), intentional acts causing injury or damage, use of certain aircraft, watercraft, and motor vehicles, and liability related to controlled substances.
• Endorsements: Coverage can be modified or expanded using various endorsements. For example, DL 24 17 can add coverage for a home day care business operated on the premises, DL 24 14 can add loss assessment coverage, and specific endorsements like DL 24 41 (Lead Poisoning Exclusion) or DL 24 42 (Coverage for Lead Poisoning) may apply, particularly in certain states or for older homes.
• State-Specific Requirements: Endorsement DL 01 XX (where XX is the state identifier) may be required to amend policy provisions, such as cancellation, to comply with individual state laws.

Key Information for Agents and Underwriters

• Familiar Coverage: The liability coverage provided is very similar to that in Homeowners Section II, making it a familiar product for many insurance professionals.
• Risk Assessment: Underwriters should carefully assess the specific risks associated with the dwelling, such as the number of units, whether it's owner-occupied or tenant-occupied, the presence of swimming pools, animals, or any incidental business operations.
• Limits of Liability: Coverage L typically has a minimum limit (e.g., $100,000 per occurrence), which can be increased based on the insured's needs and risk exposure. Coverage M also has its own limit.
• Defense Costs: The insurer provides a defense at its expense, even if the suit is groundless, false, or fraudulent. However, the duty to settle or defend ends when the limit of liability for the "occurrence" has been exhausted by payment of a judgment or settlement.
• Defined Terms: Agents and underwriters must pay close attention to the definitions within the form (e.g., "insured," "insured location," "business," "occurrence") as they are critical to understanding the scope of coverage.
• Coverage Gaps: It's important to identify potential coverage gaps. For instance, standard DL 24 01 typically excludes most business activities; if an insured runs a small business from home, appropriate endorsements (like home day care coverage DL 24 17) or a separate business policy would be necessary.