What is the key characteristic of a DP-1 Basic Form?

The DP-1 Basic Form is primarily characterized by providing named peril coverage. This means that the policy specifies and defines certain perils, or risks, that are covered, rather than covering all possible risks which would be referred to as open-peril coverage. The named perils are explicitly listed in the policy, and the coverage only applies when those specific perils cause a loss.

This form typically includes coverage for perils such as fire, lightning, and internal explosion, which are common to basic homeowners' policies. As it focuses on these specific perils, the insured is only protected against losses resulting from them, emphasizing the importance of understanding which perils are included or excluded in a policy for effective risk management.

In contrast, open-peril coverage provides a broader scope of protection, covering all risks unless specifically excluded, which is not the case with the DP-1 form. Broad form and comprehensive coverage, while also indicating broader coverage characteristics, are not applicable in the context of the DP-1 Basic Form specifically, which is defined by its named peril approach.