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?

[Sylvia B.]

Tell them you don't want replacement insurance and that you only want to cover the cost of the house. If they won't sell you the insurance coverage you want, go to a different company.