What additional coverage is required in a dwelling policy for theft?

The correct answer is the Broad Theft Coverage Endorsement. In dwelling policies, theft is not automatically covered; therefore, if a policyholder desires coverage for theft of personal property, they must purchase a specific endorsement that addresses this risk. The Broad Theft Coverage Endorsement provides protection not only for personal property but also may cover theft occurring on and off the insured premises, making it essential for comprehensive theft protection.

This endorsement typically covers various forms of theft, including daylight burglary and theft as a result of a forced entry, which offers peace of mind to the policyholder regarding their personal belongings. Understanding the nature of dwelling policies and the specific enhancements required for theft coverage helps to ensure that policyholders adequately protect their assets.