Dwelling PolicyQuestion 81 of 158
A landlord who rents out a single-family house on a DP-3 asks whether theft losses to the dwelling are covered. Which statement is MOST accurate?
a.Theft is not a covered peril unless the Limited Theft Coverage Endorsement is added, because the dwelling is non-owner-occupied
b.Theft is automatically covered on DP-3 because DP-3 is open perils on the dwelling
c.Theft on a rental house is covered only under DP-1, not DP-3
d.Theft is automatically covered up to $5,000 with no endorsement required
Explanation
Theft is not a base peril on any DP form. For an owner-occupied DP, the Broad Theft Coverage Endorsement can be added; for a non-owner-occupied (rental) dwelling, the Limited Theft Coverage Endorsement is used, with sublimits on jewelry, firearms, silverware, and similar high-theft items. Even DP-3's open-perils language applies to the dwelling structure, not to theft of personal property, and there is no automatic theft coverage.
Law Reference: ISO DP 04 72 / DP 04 73 — Theft Coverage EndorsementsPractice all 158 questions free — no signup required.
Related questions on this topic
- Under a DP-3 written with $400,000 Coverage A, what is the automatic limit available for Coverage B (Other Structures) such as a detached garage?
- Which of the following is one of the BROAD perils added by the DP-2 Broad Form on top of the basic DP-1 perils?
- Under a standard DP-3 without additional endorsements, how is a covered loss to the named insured's Coverage C personal property settled?
- A homeowner uses a DP-3 to cover a vacation cabin she personally occupies four months each year. When a covered fire makes the cabin uninhabitable during her stay, which DP coverage reimburses her extra hotel and meal costs?
- A California landlord on a DP-3 asks whether a future earthquake that damages the rental house will be covered. Which response is correct?
- Which of the following correctly distinguishes the Dwelling Policy from the Homeowners Policy?
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