How Much Home Insurance Should You Have? 
All home insurance carriers have replacement cost estimators designed to calculate replacement value of a home in the event of a catastrophe . Carriers do n't look at purchase price , appraised value or taxable value when calculating replacement cost . Often I have a customer tell me that their home is n't worth what we have it insured for or they could rebuilt it for less money . But they rarely factor the cost of replacing a home after a catastrophe when material and labor costs skyrocket . 