Summary: There are twenty-five conditions applicable to the broad and special dwelling property forms, and twenty-six applicable to the basic form. Conditions in each form are essentially identical, with two variations: one the glass replacement condition (found in the basic but not the other forms) and the other the loss settlement provision. Changes in the conditions in the 2014 edition dwelling property forms are discussed, along with differences from the earlier editions. Most changes are cosmetic or for clarification purposes.

Topics covered:

Introduction

Policy period, insurable interest, concealment or fraud, duties after loss

Loss settlement, loss to pair or set, glass replacement

Appraisal, other insurance, subrogation

Suit against us, our option, loss payment, abandonment of property

Mortgage clause

No benefit to bailee, cancellation, nonrenewal

Liberalization, waiver or change, assignment

Death, nuclear hazard, recovered property, volcanic eruption period, loss payable clause

Introduction

Insurance Services Office (ISO) has developed a new edition (July 2014) of the dwelling program. The forms are close in design to the ISO homeowners 2011 forms. The ISO dwelling program consists of a DP 00 01 07 14 basic form, DP 00 02 07 14 broad form and DP 00 03 07 14 special perils form.

Policy Period, Insurable Interest, Concealment or Fraud, Duties After Loss

A.     Insurable Interest and Limit of Liability

     Even if more than one person has an insurable interest in the property covered, we will not be liable in any one loss:

1.     For an amount greater than the interest of a person insured under this Policy at the time of loss; or

2.     For more than the applicable limit of liability.

Analysis

This condition limits recovery under the policy, regardless of insurable interests of more than one person in the property, to the interest of the insured under the policy or the stated limits. Therefore, if the insured's insurable interest rises only to one-half of the value of the property, as if might if there were a mortgage on the property, the insured's recovery would be limited to the amount of the insured's interest.

B. Deductible

Unless otherwise noted in this Policy, the following deductible provision applies:

With respect to any one loss:

1. Subject to the applicable limit of liability, we will pay only that part of the total of all loss payable that exceeds the deductible amount shown in the Declarations.

2. If two or more deductibles under this Policy apply to the loss, only the highest deductible amount will apply.

Analysis

The deductible section has been moved from the first section of the policy. Newly added is the statement that if two or more deductibles apply that only the highest will be applied to the loss. This is prevent confusion when two deductibles could possibly be applied to one loss.