A tornado rips through your town, reducing your home to a pile of rubble. In the aftermath, you discover that it’ll cost $350,000 to rebuild your home, but your homeowners insurance policy offers only $300,000 worth of coverage. That leaves you on the hook for the rest. To avoid being underinsured for this type of…

Sarah Schlichter writes for NerdWallet. Email: sschlichter@nerdwallet.com.

The article How Much Home Insurance Do You Need? originally appeared on NerdWallet.

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