The basic dwelling form (DP-1) provides coverage specifically for certain perils, which are foundational to the policy. The correct choice highlights fire, lightning, and internal explosion as the perils that are automatically covered.
Fire is one of the most significant risks for property, and the inclusion of this peril ensures that a homeowner is protected against one of the most common sources of loss. Lightning is also covered, which accounts for damages that may occur during a storm, including the potential for fire or other damage resulting from lightning strikes. Internal explosion is another peril logically included in this basic coverage, as it addresses potential damages from explosions that occur within the dwelling itself, such as those caused by gas appliances.
The other options describe perils that are not automatically included in the DP-1. Theft and vandalism, mentioned in the first option, may require additional coverage or specific endorsements. The perils listed in the third option—flood, earthquake, and storm damage—are typically excluded from standard dwelling forms and often need separate policies or endorsements. Lastly, the fourth option refers to environmental hazards, which also fall outside the standard coverage of DP-1 and would not be automatically included.
Therefore, option B accurately reflects the perils covered