Insurance needed for duplex

[Brett Sorenson]

In August of 2013 I bought a duplex and did the whole "owner occupied" bit. So far it has worked out great and I will be moving out shortly. With that being said I decided I should probably evaluate my insurance needs.

The duplex appraised for 260k last year in Minneapolis MN. New furnace (2014), new AC (2015), new roof (2010), and all updated mechanicals.

I just got a quote from an insurance company for over $400 a month. I was taken back by this. Previously I was paying $140 a month and thought that seemed reasonable.

They keep saying....you need to insure the cost to rebuild the entire place and this and that. I owe 170k on the place and couldn't be happier if it was insured for 300k and I received a check for that much in case everything went well. I don't think a house that would sell for around 275k needs to be insured up to 425k (cost to rebuild).

Let me know your thoughts...I just can't afford to pay $400 a month in insurance. Nearly 5k a year for a house that cost 175k seems ridiculous.

Brett