Final answer:
The TDP-1 policy does not cover personal property, loss of use, or liability, and basic TDP-1 does not include risks like theft or accidental water discharge. Optional perils can be added but may not cover every risk, with common exclusions including wear and tear, flood damage, and intentional loss.
Step-by-step explanation:
The TDP-1 policy, often referred to as Texas Dwelling Policy Form 1, is a type of property insurance policy. It mainly provides coverage for dwellings and does not cover the policyholder's personal property, loss of use, or liability. The policy typically covers basic risks such as fire, lightning, and internal explosion. However, it does not provide coverage for risks like theft, accidental water discharge, falling objects, and weight of ice, snow or sleet without the addition of optional perils.
Optional perils can be purchased to extend the coverage of TDP-1. Since they are optional, the policyholder must decide to add and pay for them separately, and even then, they might not cover every possible risk. Common exclusions in TDP-1 policies and optional perils include wear and tear, ordinance or law, earth movement, water damage from floods, power failure, neglect, war, nuclear hazard, and intentional loss.