What does the DP-1 dwelling policy cover?

The DP-1 dwelling policy, commonly referred to as a Basic Form policy, specifically covers named perils. This means that the policy will provide coverage only for those risks that are explicitly listed in the policy. Some of the key named perils covered under the DP-1 include fire, lightning, and internal explosion, among others.

Named peril coverage is foundational to understanding how the DP-1 operates because it limits the insured to the specific hazards outlined in the policy contract. Unlike open perils coverage, which would provide a broader scope that includes all risks except those expressly excluded, the named perils approach requires the policyholder to be aware of the specific risks that are covered. This specificity helps establish clear expectations for both coverage and claims processing.

The other alternatives reflect broader or different types of coverage that are not characteristic of the DP-1 policy's structure. The open perils coverage represents a more extensive form of insurance, whereas the mention of "all risks except those listed" implies a different policy approach typically found in more comprehensive forms, such as the DP-3. Regarding liability coverage, this is not included in the DP-1 policy; liability insurance usually requires a separate endorsement or a different type of policy altogether. Understanding these distinctions is essential