Which of the following includes coverage for volcanic eruptions as an Extended Coverage Peril?

The correct choice is that the DP-1 policy includes coverage for volcanic eruptions as an Extended Coverage Peril. The DP-1, or Dwelling Property 1 policy, is a basic form of insurance that typically covers certain named perils, and volcanic eruption is specifically listed among these extended coverage perils.

This policy generally provides the most limited coverage compared to DP-2 and DP-3, which expand on the types of perils covered. While the DP-2 includes a broader array of hazards beyond those in DP-1, and the DP-3 is the most comprehensive form with open peril coverage, the DP-1 is specifically noted for including volcanic eruptions under its extended coverage options.

Understanding these distinctions is crucial for evaluating different dwelling policies, especially when it comes to natural disasters and the variety of coverage options available in personal property insurance.