1. Forms
2. DP
3. DP-04-41

What the form is

The DP 04 41 Additional Insured - Described Location is an endorsement to an ISO Dwelling Property policy. Its primary function is to extend coverage to a person or organization, other than the named insured, who has an insurable interest in the dwelling or other structures at the described location. This endorsement specifically applies to Coverage A (Dwelling) and Coverage B (Other Structures). A key provision of this form is the requirement for the insurance company to provide written notification to the additional insured if the policy is cancelled or not renewed.

Classes of business it applies to

This endorsement is used in personal lines for properties insured under a Dwelling Policy. It's applicable in various scenarios where a party, other than the property owner, has a legitimate financial or legal interest in the property. Real-world examples include:

• Non-occupant co-owners: Individuals who jointly own the property but do not reside there.
• Financial interest holders: For instance, parents who have provided a down payment for their child's home and wish to protect their financial interest.
• Lienholders or mortgagees (less common for this specific form if a standard mortgagee clause is already in place, but can be used for other types of lienholders): Parties who have a financial claim on the property.
• Contractors: When a dwelling is under construction and insured under a DP 11 43 (Dwelling Under Construction) endorsement, the contractor may be added as an additional insured for their interest in the described location using the DP 04 41.

Special considerations

• The endorsement requires scheduling the name and address of the additional insured person or organization, as well as detailing their specific interest in the described location.
• Coverage for the additional insured is limited to their insurable interest in Coverage A (Dwelling) and Coverage B (Other Structures) only; it does not typically extend to personal property (Coverage C) or liability, unless specified.
• The obligation to notify the additional insured of cancellation or non-renewal is a significant aspect, providing them an opportunity to protect their interest.
• This endorsement should not be confused with endorsements that add an additional insured for liability purposes (e.g., DL 24 10).

Key information for agents and underwriters

• Verify Insurable Interest: It's crucial to confirm that the person or organization to be added truly has a valid insurable interest in the property.
• Accurate Scheduling: Ensure the full legal name, address of the additional insured, and a clear description of their interest are accurately entered in the schedule section of the endorsement.
• Scope of Coverage: Agents should clearly explain to both the named insured and the additional insured the extent and limitations of the coverage provided by this endorsement – specifically that it pertains to the dwelling and other structures.
• Notification Procedures: Underwriters should ensure that internal procedures are robust enough to guarantee that the additional insured will be notified in writing in the event of policy cancellation or non-renewal, as stipulated by the form.
• Risk Assessment: While adding an additional insured for property doesn't usually significantly alter the physical risk of loss to the property itself, it does create an additional administrative duty and extends certain policy rights to another party.
• Distinguish from Mortgagee Clause: While it can name a party with a financial interest, it differs from a standard mortgagee clause which has specific protections and rights for lenders. The specific needs of the interested party should determine which is more appropriate.