If a dwelling under construction policy is in effect and the home is only 50% completed, what would the policy pay if the home was destroyed?

The policy would pay 50 percent of the coverage A limit because dwelling under construction policies are designed to protect the insured's interest in a structure that is incomplete. Typically, these policies cover the amount of insurance specified, reflecting the value of the property as it stands at the time of loss.

In the case of a home that is 50% completed and subsequently destroyed, the coverage available would logically correspond to that completion percentage. Since the dwelling is only halfway finished, the amount the insurer is obligated to pay upon loss would align with the proportional coverage based on the overall limit originally established.

This rationale aligns with the intent of ensuring that the insurer covers a fair reflection of the liability based on the existing structure rather than the full projected value, since many of the elements necessary for completion remain absent. Therefore, in this context, paying half of the coverage A limit directly mirrors the completion percentage of the home as it existed at the time of destruction.