Dwelling Policy Practice Test

Which peril is covered under both the basic form and broad form dwelling policies?

1. Fire damage

2. Internal explosion

3. Theft

4. Vandalism

The correct answer is: Internal explosion

The peril covered under both the basic form and broad form dwelling policies is internal explosion. This peril typically refers to an explosion that occurs inside the structure, leading to damage from the force of the explosion itself. In dwelling policies, the basic form (often referred to as DP-1) provides a limited range of coverage focused primarily on named perils, including fire and internal explosion. Similarly, the broad form (DP-2) expands on this coverage by including additional perils but still retains coverage for internal explosion. In contrast, theft is generally not covered under the basic form, and while vandalism is covered under both forms, fire damage is also specifically mentioned but does not fill the unique criteria of internal explosion. Understanding the specific coverages under different policies helps in choosing the right policy based on the potential risks to a dwelling.