Question

What perils are covered under a basic dwelling policy?

1) fire only
2) fire and lightning
3) fire, lightning and smoke damage
4) fire, lightning, and internal explosion

Answer 1

A basic dwelling policy usually covers perils such as fire, lightning, and internal explosion. Smoke damage is generally not listed separately as it is assumed to be part of the fire peril.

Step-by-step explanation:

The perils covered under a basic dwelling policy typically include fire, lightning, and internal explosion. While smoke damage is often associated with fire and lightning, it is not typically classified as a separate covered peril in a basic dwelling policy. Therefore, the correct answer to the question of which perils are covered under a basic dwelling policy is option 4: fire, lightning, and internal explosion.