Some people get very confused when trying to determine how much property insurance they need. It’s important to remember that the property (land) that your house sits on is not going to get stolen or damaged by fire, hurricane, tornado, etc. Only the building itself gets damaged.
So, when determining the proper amount of homeowner’s insurance that you should have, you only base it on the cost of rebuilding the home itself.
Also, whatever you paid for your house or whatever the current value might be, has nothing to do with how much it costs to rebuild it. Don’t pay higher premiums for coverage that you don’t need.
It’s always a wise choice to consult your independent insurance agent to get the most up-to-date information, as well as being able to have multiple choices to choose from, providing you the best possible coverage at a price that you can afford!