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3. DP-DS-01

Form DP DS 01 - Dwelling Property Program Declarations

The DP DS 01 - Dwelling Property Program Declarations is a foundational document in a Dwelling Property insurance policy. It is not a standalone coverage form but rather the personalized "cover sheet" that outlines the specific details of the insurance agreement between the insurer and the named insured. This form essentially customizes the policy by summarizing key variable information from the underlying coverage forms (like the DP 00 01, DP 00 02, or DP 00 03) and any endorsements attached to the policy. It provides a snapshot of who and what is insured, for how much, and for what period.

Classes of Business It Applies To

The Dwelling Property Program, and therefore the DP DS 01 Declarations, is primarily designed for residential properties that may not qualify for a standard homeowners policy. This includes:

• Non-owner-occupied dwellings: This is a major class, including rental properties with one to four units. For example, a landlord who owns a duplex and rents out both units would likely have a Dwelling Property policy with a DP DS 01 declarations page.
• Owner-occupied dwellings ineligible for Homeowners policies: This can include homes that don't meet certain underwriting criteria for a homeowners policy due to age, condition, value, or location. For instance, an older home in a coastal area with specific wind exposure might be written on a Dwelling Property form.
• Seasonal or secondary homes: Dwellings that are not the insured's primary residence. A vacation cabin used a few months a year is a common example.
• Dwellings under construction: Homes being built can be insured under this program. A person building their own home or a spec home builder might use this.
• Mobile homes (limited): In some cases, permanently located mobile homes may be eligible, often for basic coverage.
• Certain incidental business occupancies: Some small, on-premises businesses conducted by the insured might be permissible if endorsed, such as a small home office or studio with limited on-site personnel. However, properties used primarily for commercial purposes are generally not eligible.

Special Considerations

Several factors are important when utilizing the DP DS 01 and the Dwelling Property Program:

• Monoline vs. Package: Dwelling Property forms are typically monoline, meaning they cover property only. Liability coverage is not automatically included but can often be added by endorsement (e.g., via a Personal Liability Supplement like DL 24 01). The DP DS 01 would then reflect these added coverages and their limits.
• Named Perils vs. Special Form: The breadth of coverage significantly depends on which underlying Dwelling Property form is used (DP 00 01 Basic Form, DP 00 02 Broad Form, or DP 00 03 Special Form). The DP DS 01 will specify which form applies. The DP 00 01 is a named perils form offering the most limited coverage, while the DP 00 03 offers "special form" or open perils coverage for the dwelling (and named perils for personal property).
• Loss Settlement: The declarations will specify the loss settlement provisions. For the DP 00 01 (Basic Form), losses are typically settled on an Actual Cash Value (ACV) basis. Replacement Cost Value (RCV) may be available for other forms or by endorsement, subject to specific requirements like insuring to a certain percentage of the replacement cost (e.g., 80% or 100%). The DP DS 01 will reflect the chosen loss settlement.
• Vacancy Clause: Policies often have limitations or reductions in coverage if a dwelling is vacant for an extended period (e.g., beyond 60 days). This is a critical consideration for landlords or owners of unoccupied properties.
• Endorsements: The DP DS 01 will list all endorsements attached to the policy. These endorsements modify the standard coverage and are crucial for tailoring the policy to the specific risk. Examples include endorsements for theft coverage, ordinance or law, or specific perils.

Key Information for Agents and Underwriters

The DP DS 01 is a critical tool for both agents and underwriters:

• Risk Assessment: The information on the declarations (property location, construction, occupancy, age of dwelling, chosen coverages, and limits) is vital for underwriters to assess the risk and determine appropriate pricing. For example, a seasonal rental in a high-risk wildfire zone will be underwritten and priced differently than an owner-occupied dwelling in a low-hazard area.
• Pricing: Premiums are directly influenced by the selections made on the declarations, including coverage limits, deductibles, optional coverages selected, and the underlying form used.
• Coverage Gaps: Agents must carefully review the declarations with the insured to ensure the selected coverages, limits, and endorsements adequately address the insured's needs and exposures, avoiding potential coverage gaps. For example, ensuring a landlord understands that a basic DP-1 might not cover vandalism or theft without specific endorsements.
• Underwriting Guidelines: Insurers have specific underwriting guidelines for the Dwelling Property program. The declarations page helps verify that the risk meets these guidelines. This includes confirming the dwelling type, occupancy, number of units (typically 1-4), and that it's not used for ineligible business purposes.
• Accuracy is Paramount: Incorrect information on the declarations (e.g., wrong location, incorrect named insured, inaccurate limits) can lead to significant problems at the time of a claim, potentially even voiding coverage. Agents must ensure all details are accurate.
• Comparison Point: The DP DS 01 serves as a clear, concise summary that allows for easy comparison if the insured is shopping for quotes or when renewing the policy.

In essence, the DP DS 01, while a summary document, is the key that unlocks the specifics of the Dwelling Property policy, making it indispensable for all parties involved in the insurance transaction.