How Much Insurance Do You Need On A Home? 
For many this amount is determined in part by the mortgage company . You need sufficient coverage to satisfy your lender . In California the lender can not ask for more than the amount necessary to replace the residence . That calculation can be done in the office of an insurance agent . You might find that the amount to rebuild differs from the purchase price but that is because the purchase price is influenced by market pressure where costs of repair remain rather stable . 