All of the following statements about a DP-1 are true EXCEPT?

In a DP-1 policy, which is a dwelling property insurance form, buildings are covered for losses on an actual cash value (ACV) basis. This means that in the event of a loss, the insurer will pay the replacement cost minus depreciation. The contents, or personal property within the dwelling, are also covered on an ACV basis.

When it comes to the coverage type, the DP-1 provides a named peril coverage, which means that it only covers specific perils listed in the policy. Lightning is indeed a covered cause of loss under this form, but it is important to note that building losses are not covered on an "all risk" basis; "all risk" coverage typically refers to a broader type of protection that is not limited to named perils. Therefore, the statement that building losses are covered on an "all risk" basis is not accurate for a DP-1 policy, making it the correct answer to identify as the false statement given in the question.