1. Forms
2. DP
3. DP-04-72

Form DP 04 72: Broad Theft Coverage

The DP 04 72, Broad Theft Coverage endorsement, is designed to be added to Dwelling Property forms (DP 00 01, DP 00 02, and DP 00 03) to provide coverage for theft of personal property. The base Dwelling Property forms typically exclude or significantly limit theft coverage, making this endorsement crucial for policyholders seeking protection against such losses. It covers direct physical loss to personal property owned or used by an "insured" caused by theft, including attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. This endorsement can provide both on-premises and off-premises coverage.

Classes of Business It Applies To

This endorsement is primarily for owner-occupied dwellings, including co-ops or condominium units. It can also be used for apartments occupied by a tenant named insured. It is not intended for non-owner-occupied dwellings; for those situations, the Limited Theft Coverage endorsement (DP 04 73) would be more appropriate as it provides on-premises coverage only. Real-world examples include:

• A homeowner who rents out a room in their primary residence and wants to ensure their personal property is covered against theft by tenants or others.
• An owner of a seasonal dwelling that is occupied by the owner for part of the year.
• A tenant named as the insured on a dwelling policy for an apartment they rent.

Special Considerations

There are several important considerations when using the DP 04 72 endorsement:

• Occupancy Requirement: The dwelling, co-op, or condo unit must be owner-occupied to be eligible for broad theft coverage. If it's an apartment, it must be occupied by the tenant named insured.
• Off-Premises Coverage: Off-premises theft coverage can only be purchased if on-premises coverage is also purchased. The limit for off-premises coverage cannot exceed the on-premises limit. This is beneficial, for instance, for covering personal property of an insured student away at school.
• Vacancy: Like the base dwelling policies, there is typically no coverage for theft or vandalism if the described location has been vacant for 60 or more consecutive days immediately before the loss. However, a dwelling under construction is not usually considered vacant.
• Automatic Removal Coverage: If the insured moves to a new principal residence, the on-premises coverage limit applies at both the old and new locations, and for property in transit, for 30 days from the start of the move. After the move is completed, coverage at the old location ceases.
• Special Limits of Liability: The endorsement includes special, lower limits for certain categories of personal property. These sub-limits are part of, and do not increase, the overall on-premises or off-premises limits. Examples of property subject to special limits include:
  • $200 for money, bank notes, bullion, gold (other than goldware), silver (other than silverware), platinum (other than platinumware), coins, medals, scrip, stored value cards, and smart cards.
  • $1,500 for securities, accounts, deeds, evidences of debt, letters of credit, notes (other than bank notes), manuscripts, passports, personal records, tickets, and stamps.
  • $1,500 for watercraft of all types (including their trailers, furnishings, equipment, and outboard motors).
  • $1,500 for other trailers not used with watercraft.
  • $1,500 for jewelry, watches, furs, and precious or semi-precious stones.
  • $2,500 for firearms and related equipment.
  • $2,500 for silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinum-plated ware, and pewterware.
• Property Not Covered: Certain property is excluded, such as property of tenants not related to an insured (unless specifically endorsed), property at any other location owned, rented to, or occupied by an insured (unless the insured is temporarily residing there), property in the mail, or property in the custody of a laundry or cleaner (except for loss by burglary or robbery). Credit cards and electronic fund transfer cards are also typically excluded.

Key Information for Agents and Underwriters

Agents and underwriters should be mindful of the following when dealing with the DP 04 72:

• Pricing: The premium for this endorsement will depend on the limits selected for on-premises and off-premises coverage, the location of the property, and the insured's loss history. Minimum theft limits often start around $1,000.
• Risk Assessment: The occupancy of the dwelling is a primary underwriting concern. Owner-occupied residences generally present a lower theft risk than tenant-occupied or vacant properties. Neighborhood crime rates and the presence of security systems (alarms, deadbolts) can also influence risk assessment and potentially eligibility or pricing.
• Coverage Gaps: While this endorsement broadens theft coverage, it's crucial to explain the special limits of liability to clients, as these are often lower than what might be expected for high-value items like jewelry, firearms, or silverware. For clients with significant exposures in these categories, scheduling items on a separate personal articles floater may be necessary. The dwelling forms themselves also have a list of "Property Not Covered" which differs from homeowners forms; for example, dwelling forms often exclude all forms of data and credit cards, whereas homeowners forms may offer limited coverage.
• Underwriting Guidelines: Insurers will have specific underwriting guidelines regarding eligibility, maximum limits offered (e.g., some plans may cap broad theft limits at $5,000), and conditions under which coverage might be declined (e.g., properties with unrepaired prior damage or those in areas with exceptionally high crime rates). It's important to verify that the personal property coverage limit (Coverage C) on the base dwelling policy is equal to or greater than the theft limit being requested.
• Comparison to Homeowners Policies: It's important to note that the special limits of liability in the DP 04 72 are similar to those in homeowners forms, but homeowners forms often provide some coverage for business property and certain electronic apparatus, which this dwelling endorsement typically does not.
• Duties After Loss: The endorsement adds a condition requiring the insured to notify the police in case of loss by theft.