What is the coverage status for theft in Charles' new dwelling policy?

In a standard dwelling policy (DP), theft coverage is not included by default. This means that an unendorsed dwelling policy does not provide coverage for losses resulting from theft. To have protection against theft, the policyholder needs to purchase an endorsement specifically for theft coverage.

This knowledge is crucial for property owners like Charles, as it emphasizes the importance of reviewing policy details and understanding what is and isn't covered. Homeowners need to be aware of these nuances to make informed decisions about additional coverage that might be necessary for their protection against potential losses from theft.

The other options imply misconceptions about theft coverage within different types of dwelling policies. For instance, while a DP 3 may offer broader coverage compared to other forms, it still necessitates an endorsement if theft protection is desired. Understanding these distinctions helps ensure appropriate coverage is secured.