Which kind of Property Insurance Coverage is the Norm?

[Jack Barkow]

Hello BP.  I'm just starting out and closing on a rental 4-plex soon.  I'm currently weighing the different property insurance options and there is a huge difference in costs/coverage between insurers.  The background on this property is that it will be financed at around 135k through delayed financing.  I already have a 2MM Umbrella for liability's sake.  My main questions are the following:

Should I only be insuring the property for 150/160k or so in the event that it burns down so that I can pay off the mortgage and spend some money on the cleanup so that I can just sell the land and move on?

Should I be looking at policies that cover me for rebuilding the property in the event that is totally destroyed?  (350k+ rebuild value per insurance companies)

The differences in these two kinds of policies are around 1500 annually 1200 vs 2800.  They both have the standard 1MM/5K liability coverages, lost rents, and broad perils.  In short, I don't want to be throwing away 1500 in annual cashflow if I really don't need to, but I also don't want to wreck myself for an extra 1500 annually.