What type of coverage is provided under DP1 - Basic Form?

The correct choice signifies that the DP1 - Basic Form coverage provides specified named perils. This type of policy specifically lists certain perils for which coverage applies, such as fire, lightning, and, in some cases, theft. This contrasts with broader forms of coverage that encompass all perils or offer a wider range of protections.

The DP1 form is intentionally limited, making it a more affordable option for properties, particularly rental properties or secondary homes. It’s designed for those who want basic coverage without the higher costs associated with more comprehensive policies that cover a wider array of risks.

Understanding the specifications of the coverage is critical for property owners and insurance producers to ensure clients select the right level of protection for their unique needs. The other answer choices reflect tiers of coverage that go beyond what the DP1 form offers; thus, they don’t align with the specifics of the Basic Form.