What is the premium for the dwelling under construction endorsement under the dwelling policy?

The premium for the dwelling under construction endorsement is based on the average amount of insurance during the construction period. This reflects the fact that as construction progresses, the insurance coverage needs may vary. At the beginning of the construction, the overall value of the property is lower, but as more work is completed, the value increases. By using the average amount of insurance, the premium is adjusted to accurately reflect the risk associated with the property as it is being built.

This approach provides a fairer representation of the risk and ensures that the insured amount is adequate throughout the construction period without overcharging for the insurance based on the final estimated value of the completed structure.