The on line Zillow quote was less than half of the dwelling coverage on my insurance policy. I realize prices on homes are too low now but 200% of the value of the house seems extraordinarily high.
My understanding is that dwelling coverage is based on the full replacement cost of the home if you lose everything. Materials and labor right now could cost significantly more than the severely depressed home values. On the other hand, it shouldn't account for land value, so that should balance out the difference. Also, Zillow can be way off sometimes. Have you talked to your insurance company about this?
My insurance is set at X value for the home...base on market.,..but then has 75% of X as "contents"
Well I'm happy now. The insurance people talk blah, blah & gave me a $50 credit. That's better than nothing. Another person in our office had his tax adjusted over $1000. Wow. Let me suggest even if you don't understand your bill you should at least ask your insurance people to explain why the price has been increased. Maybe you'll get a break, too.
Good news. Never hurts to ask.