Which of the following perils is excluded in all dwelling policy forms?

The exclusion of government action as a peril in all dwelling policy forms is significant because this exclusion recognizes the power of governmental entities and the impact their actions can have on property. When a government takes action, such as seizing property through eminent domain or enacting regulations that might lead to a loss of property value, the insurance policy typically does not cover resulting losses. This exclusion protects insurers from liabilities that arise from the extensive powers held by government entities, which can often be unpredictable and are outside the control of property owners and insurers.

The other perils mentioned—freezing, collapse, and volcanic eruption—are generally addressed differently in dwelling policies. For instance, damage from freezing may be covered under specific circumstances, collapse could be included depending on the specific causes listed in the policy, and volcanic eruptions often may have limited coverage or be subject to specific conditions rather than being outright excluded. Therefore, the exclusion of government actions is a fundamental and straightforward provision applicable to all dwelling policy forms.