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When you increase the insurance limits on your home, the dollar amount of financial protection is automatically increased on the family’s personal property, as well as on the dwelling structure.
Normally, under the homeowners package policy, the limits on personal property are set at 60 percent of the limits on the dwelling. For example, if your home is insured for $20,000, you have $10,000 worth of insurance on the furnishings, clothing and other personal property. If you increase the limits on the dwelling to $40,000, limits on the personal property automatically jump to $20,000.
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