DP-1 – Dwelling Fire Basic Form
Definition:
A limited insurance policy that covers a rental or non-owner-occupied dwelling for specific named perils.
Explanation:
This is the most basic dwelling fire form and often only covers risks like fire, lightning, and internal explosion. It provides minimal protection compared to other forms.
Example:
If a tenant’s rental home insured under a DP-1 catches fire, the policy pays for repairs but may not cover theft or vandalism.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.