What type of policy is the DP-1?

The DP-1, or Dwelling Property 1 policy, is categorized as a basic form of homeowners insurance. This type of policy offers the most limited coverage among the dwelling property options. It primarily covers specific perils, such as fire, lightning, and internal explosion, making it essential for policyholders to understand the limitations of their coverage.

As a basic form policy, the DP-1 does not include broader protections such as theft or vandalism unless specifically added through endorsements. This reflects its foundational protection approach, aligning with the needs of homeowners who seek basic coverage for their dwelling and personal property while potentially planning to include additional protections as needed.

This distinction is important as it affects coverage limits and the types of risks that homeowners may want to protect against. Therefore, recognizing the DP-1 as a basic form allows for better informed decisions when considering different forms of dwelling insurance policies.