The choice is yours, but State Farm recommends you choose a coverage limit at least equal to your home’s estimated replacement cost. (The estimated replacement cost isn’t the same as the market value, which is the price you can expect your home to yield on the market.) If you choose a coverage amount less than the estimated replacement cost, you may not be eligible for certain coverages. Since no one can say what the exact cost will be to replace your home in the future, you’ll need enough coverage to account for unforeseen circumstances.
We recommend that you purchase coverage equal to or greater than the estimated replacement cost of your home. Your home's estimated replacement cost also determines which policy options are available to you. Since it's impossible to predict the cost to replace your home in the future, it's important to have enough coverage to account for unforeseen circumstances.
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