How Do You Estimate Home Insurance? 
When you buy a home there are 3 numbers that come into play . The first number is the market price or purchase price . The second number is the assessed value which is what your taxes are based on . The third number is Replacement Cost which is the number used to insure your house . When insuring any home you need to make sure you have enough coverage to rebuild the structure . You do n't have to insure the land because if the house burns down the land is still going to be there . Replacement Cost for older homes is often the highest number because of the cost of materials and craftsmanship . 