South Carolina Personal Lines Practice Exam

What perils are covered under the DP-2 Broad Form?

1. Only fire and wind damage

2. Basic form perils, WHAVER, VMM, and Broad Form perils

3. Fire, Theft, and Vehicle damage

4. Only natural disasters and fire

The correct answer is: Basic form perils, WHAVER, VMM, and Broad Form perils

The DP-2 Broad Form, also known as the Dwelling Policy - Broad Form, covers a comprehensive range of perils that includes the basic form perils, which are fire, lightning, explosion, and more. Additionally, the DP-2 policy incorporates the "WHAVER" (which expands to windstorm, hail, aircraft, vehicles, explosion, riot or civil commotion) as well as the VMM (Vandalism and Malicious Mischief) coverage. Beyond that, it also covers broader perils which may include some types of theft and falling objects, among others. This extensive coverage is an improvement over the DP-1 Basic Form, which only covers certain named perils without the enhancements provided in the DP-2. Therefore, the correct response reflects the inclusion of both the basic form perils and these additional coverages that make the DP-2 more comprehensive for property protection. The other responses do not encompass the full breadth of the DP-2 coverage. For instance, focusing solely on fire and wind damage severely limits the understanding of what perils the policy includes. Similarly, mentioning only natural disasters and fire overlooks key covered perils and misrepresents the intent and coverage scope of the policy. Furthermore, including theft