Personal property coverage, on the other hand, protects your belongings inside the home. It is important to accurately assess the replacement cost of your home to ensure you have adequate dwelling coverage limits. The policy limit for this coverage determines the maximum amount your insurance provider will pay to repair or rebuild your home in the event of damage or destruction due to a covered peril. They play a crucial role in determining the level of protection you have for various aspects of your home, including dwelling coverage, personal property coverage, and additional living expenses.ĭwelling coverage is the portion of your policy that protects the physical structure of your home. Policy limits refer to the maximum amount your insurance provider will pay for a claim. When purchasing home insurance, it is important to understand the concept of policy limits and how they can impact your coverage. Key Questions to Ask Before Purchasing Home Insurance What is the policy limit?
