What type of coverage does DP 1 provide?

DP 1 refers to the Dwelling Property Form 1, which provides basic coverage for residential properties. This type of policy is classified as a named peril policy, meaning it only covers specific risks that are explicitly listed in the policy. The perils covered under DP 1 include fire, lightning, internal explosion, and a few others.

Understanding that DP 1 offers basic form coverage is crucial, as it represents the most minimal level of protection within dwelling insurance policies. By contrast, other forms, like Broad form or Special form, include more extensive coverage and cover a wider range of risks, leading to higher premiums. Thus, recognizing that DP 1 is a basic form with named perils is essential for understanding the various insurance options available and how they cater to different risk levels and coverage needs for property owners.