What does the TDP 1 policy primarily provide?

The TDP 1 policy primarily provides named perils coverage. This type of policy specifies the exact perils that are covered, meaning that only the risks listed in the policy are insured. For example, if a peril is not explicitly mentioned, such as certain types of flooding or earthquakes, the policy would not cover damages caused by these events. Named perils coverage is beneficial for policyholders who prefer to have clarity on what risks are protected under their insurance, allowing for more focused premiums based on the specific threats faced in their area.

In contrast, options like replacement cost coverage refer to how losses are covered (based on what it would cost to replace damaged property) rather than the types of perils covered by the policy. Full coverage for all damages would imply a comprehensive insurance approach, encompassing a wide range of risks, which is not the case with named perils coverage. Personal liability coverage deals with risks associated with injuries to other people or damages caused to their property, which also does not align with the specific nature of the TDP 1 policy that focuses on named perils.