That is bizarre. Over here, my agent is constantly informing me that I should up the coverage limits. A small 800 square foot house can't be built for $120K anymore.......per the insurance company. They wish to maximize their premiums.......obviously. I resist the pressure to raise the valuations.

In your specific case, simply determine the value per square foot. $200. per square foot can build a pretty elaborate house. I'm convinced that I can build a basic house for $150./ If you use the number of $200./, I'm sure that you'll be OK unless you have a very high end dwelling with expensive kitchens and baths.