What is a dwelling coverage limit?

Your dwelling coverage limit is the maximum amount your insurance will pay to repair or rebuild your home's structure if it is damaged or destroyed by a covered peril. This limit should equal the full replacement cost of your home, not its market value. Market value includes land, which does not need to be replaced. If your dwelling limit is too low, you could be left paying the difference out of pocket after a total loss. Review your limit annually to account for inflation.