Some people might think their houses are over insured refer to the market price

I am just going to keep mine the same because things may change and you can never have too much coverage. I would like to have the extra money also if something would happen.

Yes, the amount of insurance that you are carrying on the structure of your house should be how much it would cost to replace your house if something was to happen to it. For example, when my husband and myself bought our house almost four years ago, we were able to buy the house for $70,000, however, we have to carry $150,000 on the structure of the house because that is how much it would cost to replace the structure of the house. We also have and additional $50,000 on the contents of the house.

Yes, this is exactly right. The land your house stands on is its real, underlying value and what will remain yours whatever is built on it. What you insure against is what you might lose if the house were destroyed and what, specifically, it would cost you to replace it. Essentially, it is the price you paid for the house and land LESS the amount you would have had to pay for the empty lot. My insurance is actually in two parts (and with two different insurance companies). One policy insures the contents - the furniture and other valuables, some of which are, of course, irreplaceable. The other policy insures the building itself and will (hopefully) cover me in the event that the house were completely destroyed and the site had to be cleared and the house rebuilt. All of this is really just an estimate based on the average cost per square foot of building a house. It is actually considerably less than the market value of the house (because I would still own the land).