Under what condition can broad theft coverage be added to a dwelling policy?

Broad theft coverage can be added to a dwelling policy when the insured is the owner-occupant of the dwelling. This is because broad theft coverage is specifically designed to protect the personal property of the insured within their residence, reflecting the relationship between ownership and occupancy. It provides coverage for personal belongings against theft and is a benefit to those who live in the home they own, as they are most vulnerable to such risks.

In contrast, tenants typically cannot add broad theft coverage to a dwelling policy as it specifically caters to homeowners. If the dwelling had fewer than two units, the primary focus would generally be on residential coverage rather than theft. Similarly, a dwelling used for commercial purposes may not qualify because dwelling policies are typically designed for residential use and do not extend the same protections for commercial activities. Understanding this helps clarify why owning and occupying the dwelling is a key condition for adding broad theft coverage.