Limits of Coverage C for DP1, DP2, DP3

Limits of Coverage C for DP1, DP2, DP3

by John Krissel -
Number of replies: 1

Hi Jan, I'm having trouble zeroing in on the limits for Coverage C of three DP forms. The manual doesn't seem to lay it out clearly enough for me. Is it selected by the Insured like that of A?

Also what are the limits for Coverage D, E under Form DP-3?

 

Thanks.

In reply to John Krissel

Re: Limits of Coverage C for DP1, DP2, DP3

by Jan Bradburn- -

Hi John, 

The main thing to remember about Dwelling Policies is that the owner is not living in the property and they may not have a great deal of personal property (Coverage C) to insure. Coverage C limits vary based on the needs of the insured.  The Coverage C limit is usually 50% but it can be increased by endorsement. The only constraints are:

Coverage A may not be less than $12,000 for a DP-2 and $15,000 for a DP-3.  If Coverage A is not included, the minimum for Coverage C is $4000.  An example of this would be property with only a fence or a shed. 

Coverage D under a dwelling policy is for loss of rental income. It is usually 20-30% of Coverage A and it is payable in increments of 1/12.  If Coverage D is $20,000, you divide $20,000 by 12 = $1666 is payable per month. 

Jan