Mississippi Property & Casualty Practice Exam

In DP1, which of the following coverages is included?

1. Dwelling coverage

2. Personal liability coverage

3. Medical payments coverage

4. Loss of use coverage

The correct answer is: Dwelling coverage

In a Dwelling Policy Form 1 (DP1), commonly referred to as a basic form, dwelling coverage is indeed included as a primary coverage. This type of policy is specifically designed to cover physical structures on the property, such as the home itself, against specific perils. The DP1 policy typically includes coverage for the dwelling itself, which generally protects against risks like fire or lightning, although the scope of coverage is less comprehensive than in other forms, such as the DP2 or DP3. The other types of coverage mentioned, such as personal liability coverage, medical payments coverage, and loss of use coverage, are not part of the DP1 package unless specifically endorsed. Personal liability generally requires a separate policy or endorsement to protect against claims of bodily injury or property damage. Similarly, medical payments and loss of use coverages are typically found in more comprehensive forms or through separate endorsements, making dwelling coverage the only standard inclusion in a DP1 policy.