As a lender, I typically use a factor of .35 X loan amount for estimating insurance premium. This has always been common practice in the mortgage industry; however, I can no longer rely heavily on this estimate. At times, the sales price, or appraised value is much, much less that the cost of replacement, In that case, there is a good chance the lender will require increased coverage. There is a lot of variance in coverages and premiums, I would get estimates from at least three agents/companies. Of course, if you are active or inactive military...I have never seen better premiums or service that USAA. The company is golden for every client I have ever had who worked with them.