1. Forms
2. DL
3. DL-25-04

What the form is

The DL 25 04 "Special Provisions - California" is an endorsement used to modify standard dwelling or liability insurance policies to incorporate specific terms, conditions, or exclusions required by California law or by an insurer's particular underwriting guidelines for risks located in California. Its primary function is to ensure that the insurance contract aligns with state-specific mandates or addresses unique risk characteristics prevalent in California.

Classes of business it applies to

This endorsement is typically used with personal lines insurance, specifically for dwelling property and liability coverages. Examples include:

• Landlord Policies: For individuals or entities renting out residential properties.
• Seasonal Dwellings: For properties not occupied year-round.
• Non-Owner Occupied Dwellings: Similar to landlord policies, where the insured does not reside at the property.
• Dwelling Fire Programs: Often part of a package of forms for programs insuring dwellings against fire and other perils.

For instance, it might be attached to a policy covering a rental home in Los Angeles or a vacation cabin near Lake Tahoe to address specific California-related insurance provisions.

Special considerations

Key considerations for the DL 25 04 include:

• Mandatory Application: In certain insurance programs or for specific types of risks in California, this endorsement may be mandatory. For example, the Markel Dwelling Fire program in California lists this form as mandatory.
• State-Specific Compliance: The provisions within this endorsement are tailored to California's legal and regulatory environment. This could involve modifications to definitions, coverage grants, exclusions, or conditions.
• Impact on Coverage: The special provisions can significantly alter the base policy. It's crucial to understand how these provisions interact with the main policy's terms. For example, it might clarify how certain state laws regarding liability or property claims are handled under the policy.

Key information for agents and underwriters

Agents and underwriters should be aware of the following:

• Accurate Policy Issuance: Ensure this endorsement is included when required by the insurer's guidelines or the specific program for California risks. Failure to do so could lead to non-compliance or unintended coverage gaps.
• Risk Assessment: The provisions in DL 25 04 might affect the insurer's exposure. Underwriters need to understand these California-specific modifications to accurately assess and price the risk.
• Client Communication: Agents should be able to explain the impact of these special provisions to their California clients, ensuring they understand how their coverage is shaped by state-specific requirements.
• Edition Dates: Be mindful of using the correct edition date of the form (e.g., 04 94, 07 05) as provisions may change over time. The specific content can vary between editions, reflecting changes in California law or insurer practices.