Louisiana P&C Adjuster Practice Exam

Which perils is Gary covered for under his DP-1 policy?

1. Flood and earthquake

2. Theft and vandalism

3. Fire, lightning, and internal explosion

4. Wind and hail damage

The correct answer is: Fire, lightning, and internal explosion

A DP-1 policy, also known as a Dwelling Policy 1, is one of the basic forms of property insurance designed for residential properties. It primarily provides coverage for specific perils, which are explicitly listed in the policy. The correct choice, which includes fire, lightning, and internal explosion, aligns perfectly with the standard covered perils under a DP-1 policy. These perils are foundational to property insurance, emphasizing the protection against prevalent and catastrophic events that can damage a dwelling. Fire and lightning are common risks that homeowners face, and internal explosions can occur from appliances or heating systems within the home. Other options list perils that are generally not covered by a DP-1 policy. For instance, flood and earthquake are typically excluded from standard coverage, necessitating additional policies for those risks. Similarly, although theft and vandalism can cause significant damage, they fall outside the typical scope of a DP-1 policy unless otherwise specified in endorsements. Wind and hail damage, while commonly encountered risks for homeowners, also tend to be addressed in broader homeowner's insurance policies rather than the limited DP-1 coverage. Therefore, the inclusion of fire, lightning, and internal explosion as covered perils under the DP-1 policy perfectly reflects the primary