Which statement about covered perils in dwelling policies is true?

Dwelling policies focus on providing coverage for specific perils, which means that for the policy to cover a loss, the particular peril must be explicitly listed in the policy. This coverage is generally based on the type of dwelling policy, such as the Basic Form, Broad Form, or Special Form.

The Basic Form covers a limited number of named perils, while the Broad Form expands this list, and the Special Form may provide broader coverage often on an all-risk basis but still requires the specifics of coverage to be understood according to the form selected. Therefore, the correct answer highlights the necessity of having specific perils listed in the policy for them to be covered, which is a fundamental principle of insurance underwriting and policy construction. This ensures both the insurer and the insured have a clear understanding of what is covered, allowing for well-defined risk management.