The best question to ask when looking at replacement cost amounts is "What happens if this amount of insurance is not enough and my house burns to the ground, will they still pay to replace my home completely?" The answer to that question in writing will tell you alot about the policy and the agent.

The Home Insurance Specialist

Hi Frank,

The difference between those two premiums is probably very little per year. I would opt for the higher amount, just to be safe. The best way to compare insurance costs is to ask each to tell you what they would charge for the same coverage....for instance ask AAA what they would charge you for $205,000. Also, don't forget that the insurance company who gives you your auto policy will offer a discount for an additional policy. So ask about those discounts too.

Karen