subject: Regarding the Purchase of Home Insurance [print this page] Regarding the Purchase of Home Insurance
When buying home policies, normally the most important consideration is what is known as the liability limit. This determines what your maximum coverage is if something should happen to your house. This can of course depend on the value of your building and the more valuable your house is, the higher your liability limit must be. This value will be determined not be the current appraised value of your house but by what it will cost to rebuild your house. This includes materials, labor and any other costs that would go into rebuilding your house.
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