Limits of liability for a covered dwelling under construction are based on the?

The correct answer is based on the completed value of the structure because this amount reflects the total cost to complete the dwelling once construction is finished. The completed value encompasses all expenses related to the construction, including labor and materials, ensuring that the property is fully covered under the insurance policy. This approach provides adequate financial protection in the event of a loss, as it accounts for the full investment made into constructing the dwelling.

In contrast, the other options do not adequately represent the true financial exposure involved in the construction process. The estimated value of the structure prior to construction and the current value of the structure might not accurately reflect the total costs incurred during the building period. Likewise, taking the completed value and subtracting repair costs would not give a valid measure of the liability limit intended for new constructions; instead, it could lead to undervaluation of the necessary coverage needed in the event of a loss occurring during the construction phase.