What's the best way to go about estimating cover for building insurance? We bought average 3x1 home (607sqm land) in 2007 for $305 000. I think land value around then was $160k. We insured house for about $160k. Insurance keeps increasing the cost so it's now $194k. I've used an online insurance estimator and it's come in at replacement cost about $290k to rebuild/replace. That seems extraordinarily high? I've tried to find out what the land value might be now, but there's no vacant land there anymore. Do I just look at surrounding areas? Are these estimates the best way to go? I know that replacement cost to rebuild is different to market value of home, but still, looking at similar houses that aren't selling for more than $310k, I'm reluctant to increase the amount.