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Your homeowner's insurance is designed to cover the costs of rebuilding your home and replacing certain belongings based on current prices. Some homeowners make the mistake of thinking their insurance only needs to cover the home's sales price. If your home is completely destroyed, new construction and materials will most likely cost more than the original purchase price.

Check with your agent to make sure you have enough homeowner's coverage so you won't face having larger bills than you imagined in the event of a disaster.
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