What type of coverage does the Basic Form (DP-1) policy provide?

The Basic Form (DP-1) policy is categorized as a named peril policy because it specifically lists the perils that are covered. This means that coverage is only applied to the risks explicitly mentioned in the policy, such as fire, lightning, and internal explosion. The insured must be aware of the exact nature of the coverage, which is confined to these named perils.

In contrast to this, open peril coverage refers to a broader scope of protection that covers all risks except those explicitly excluded within the policy. All-risks coverage and comprehensive coverage also imply a similar extensive protection beyond specific named risks. These terms suggest coverage that does not limit the insured's claims to just what is mentioned in a policy, differing significantly from the constrained scope of the Basic Form. Thus, the defining characteristic of the Basic Form is that it only provides coverage for specifically itemized perils, aligning it distinctly as a named peril policy.