How much should I pay to insure a $40k house?

[Tyler D.]

I'm in the process of buying my first house, which is a $42k SFH that is in great condition.

I called USAA and they quoted me a $140k rebuild cost, which I thought was extreme.

Their rates were $910 for 1k deductible and $503 for $10k deductible. These don't seem worth it for a $40k house, though a $1M liability coverage is included in both.

So, your thoughts? Which of the two would you get, if either? Should I shop around for rates, or is this fairly normal and to be expected?