West Virginia Property and Casualty Licensing Practice Exam

The DP1 Basic Form includes coverage for which of the following?

1. Fire

2. Burglary damage

3. Personal injury

4. Additional living expenses

The correct answer is: Fire

The DP1 Basic Form, also known as the Dwelling Policy 1, is designed to provide coverage primarily for property damage under specific perils. Among these perils, fire is explicitly covered. This form is considered a basic level of coverage, often limited to a defined set of risks as specified in the policy. In contrast, options such as burglary damage, personal injury, and additional living expenses are not included in the DP1 Basic Form. Burglary damage is typically covered under broader policies or endorsements, while personal injury falls outside the scope of property damage coverage entirely, focusing instead on liability aspects. Additional living expenses are also not part of the DP1; this coverage would require a more comprehensive policy, such as the DP2 or DP3 forms, which include additional provisions for living expenses if a covered peril makes the home uninhabitable. Thus, the correct answer highlights the fundamental purpose of the DP1, which is to safeguard against loss specifically due to fire, demonstrating its role as a basic coverage option for dwelling protection.