A basic DP-1 dwelling policy provides which type of coverage?

The basic DP-1 dwelling policy provides named-peril coverage, which means that it explicitly lists the specific perils that are covered. In a named-peril policy, the insurer outlines the causes of loss for which coverage is provided, such as fire, lightning, and theft, rather than covering all risks, which is what all-risk or comprehensive coverage would do. This means that if a peril is not specifically listed in the policy, it is not covered. Named-peril coverage is typically more limited than other types of coverage, emphasizing the importance of understanding which specific risks are included in the policy to effectively assess potential coverage gaps.

In contrast, all-risk coverage provides protection against all risks unless they are specifically excluded, and comprehensive coverage is generally broader, encompassing more risks than named-peril coverage. Broad coverage expands on the named-perils of the basic policy but does not exceed its limitations, making named-peril the most appropriate term for the coverage provided by a basic DP-1 dwelling policy.