What is the main difference in coverage amounts required between Dwelling and Homeowners policies?

The primary distinction in coverage amounts between Dwelling and Homeowners policies lies in their intended use and the scope of coverage. Homeowners policies typically cover both the dwelling itself and the personal property within it, as well as additional living expenses, liability, and other protections tailored for residences occupied by the homeowner. As a result, these policies generally necessitate higher coverage amounts to account for the interconnected types of risks and assets they protect.

On the other hand, Dwelling policies are designed primarily for properties that might not be owner-occupied, such as rental properties or homes under construction. These policies tend to focus coverage more narrowly on the physical structure itself and might not require as high of coverage amounts because they generally do not include personal property or liability protection.

This leads to the conclusion that Homeowners policies are required to carry higher amounts of insurance compared to Dwelling policies, which may provide more limited coverage options and lower coverage requirements.