Which statement is true regarding dwelling policy coverage?

The statement that exclusions apply to all three policy forms of a dwelling policy is correct. In Nevada, as well as in other jurisdictions, dwelling policies come in three distinct forms: the basic form, the broad form, and the special form. Each of these forms contains specific exclusions that outline what is not covered under the policy. For instance, common exclusions might include damage from certain natural disasters, wear and tear, and acts of war. Because all forms have these exclusions, the statement reflects the inherent structure of dwelling policies effectively.

The other statements present misunderstandings about the nature of dwelling policies. Full replacement value for all losses does not apply across the board, as different forms may have varying levels of coverage and limitations. The assertion that only the basic form has specific exclusions is inaccurate, as the broad and special forms also have their own exclusions. Finally, the notion that all policies cover comprehensive perils automatically is misleading, since coverage for comprehensive perils is typically not included in basic or broad forms without further endorsements or options, and such coverage is not a standard feature of dwelling policies.