Calculating Insurance Coverage Amount

[Brandon Leong]

I am looking to setting up an insurance plan for the house that I have put in a PA for.  The property is a 3br/1ba in Kansas City. The mortgage lender requires that we set insurance up.

I got two quotes from two insurance agents.

Quote #1
Dwelling coverage amount -- $70/sqft
Insurance agent says they start at $70/sqft and then rely on us to estimate the required coverage

Quote #2
Dwelling coverage amount -- $100/sqft
Insurance agent says that they used a 3rd party company to calculate this and can't lower the dwelling coverage amount unless we prove it otherwise.

My question is, how do I calculate the dwelling covert amount I need? Which plan is more reasonable?

Thanks for any help!