What it does
Replaces replacement cost settlement with functional replacement cost for buildings, a common choice for older rental dwellings with obsolete construction. The 2014 revision made deductible-related changes to this endorsement.
Who needs it
Owners of older rental dwellings.
Quoting and selling notes
- DP 05 31 is the modified version.
Editions and availability
Current edition 07 14, replacing 12 02. Carriers adopt ISO editions state by state, so the edition on a given policy can lag the newest one.
Program notes
Dwelling policies are written for the property owner, not the occupant, and are the usual vehicle for landlords of one- to four-family dwellings. Because the forms carry no liability coverage, review every dwelling file together with DL 24 01 (or the homeowners or commercial policy that provides premises liability), and with any personal umbrella the client carries.
