South Carolina Personal Lines Practice Exam

Which of the following perils are included in the DP-1 Basic Form?

1. Fire, Theft, and Water Damage

2. Fire, Lightning, and Internal Explosion

3. Burglary and Vandalism

4. Smoke, Fire, and Hail

The correct answer is: Fire, Lightning, and Internal Explosion

The DP-1 Basic Form, or Dwelling Policy - Basic Form, covers a specific set of perils known as "named perils." Among these, the inclusion of fire, lightning, and internal explosion is definitive and fundamental to the basic coverage provided. Fire is a fundamental peril that represents one of the most common risks to property, and it is crucial for any dwelling policy to cover it. Lightning is also included, as it can cause significant damage to structures through direct strikes or resulting fires. Internal explosion refers to explosions that occur within the confines of the dwelling itself, such as from gas leaks or malfunctioning appliances, and is crucial for providing a comprehensive coverage base. These specific perils directly address common risks associated with residential properties, making them essential components of the DP-1 coverage. Understanding the scope of these perils is key for policyholders and agents to manage risk effectively and ensure adequate coverage.