Which perils does the DP-1 policy cover?

The DP-1 policy, also known as the Dwelling Policy Basic Form, provides coverage for specific perils that are explicitly listed in the policy. This policy typically covers standard fire, lightning, and internal explosion, along with additional perils that may fall under "extended coverage." Additionally, it includes vandalism and malicious mischief (VMM).

Choosing the option that refers to extended coverage, standard fire, and VMM perils accurately reflects the comprehensive nature of the DP-1 policy, which is designed for basic coverage needs, unlike more extensive policies that cover a wider range of perils. This selection underscores the limited but specific protections offered by the DP-1, focusing on fundamental risks that homeowners may face.

The other options suggest broader or different types of coverage that are not included in the DP-1 policy. For example, the first option incorrectly limits coverage only to fire and theft, which does not reflect what the DP-1 actually covers. The choices referencing all natural disasters, earthquake, and flood damage point to risks that are typically excluded under the DP-1 form, reinforcing that it is essential for users to understand the limitations and specific coverages of their insurance policy.