What perils are covered under the DP1 (Basic Form) policy?

The DP1 policy, also known as the Basic Form dwelling policy, provides coverage for a limited number of perils. The perils that are specifically covered under this policy include fire, lightning, and internal explosion. This designated coverage is foundational in nature, which means that it adheres strictly to these listed perils without extending to other natural disasters or additional risks.

The inclusion of internal explosion as a covered peril is significant because it pertains to incidents that may occur within the dwelling and affect the structure itself. However, it is important to note that the DP1 policy does not cover broader perils such as wind, hail, or other natural disasters, which would require a more comprehensive policy like the DP2 or DP3 forms. This focus on specific, named perils is a critical characteristic of the Basic Form, emphasizing its role as an entry-level option for dwelling coverage.