Deciding how much to insure for a townhouse

[Account Closed]

Hi, newbie investor here. I just purchased my first real estate property which is a 1,395 sqft townhouse for $206k, and I'm determining how best to insure it.

I included $1M of Business Liability insurance and $10k for personal property which I expect would cover most of the appliances. I'm only responsible for insuring the interior of the unit since it is a townhome, and the insurance company asked how much I'd like to have covered for Building Property insurance. They indicated that on average people insure anywhere from $100 to $200 per square foot, which would be between $139,500 and $279,000. 

The difference in annual premiums is significant between these two options. I don't want to over insure and overpay, however I also want to ensure I have an adequate level of insurance. Any advice or insight is much appreciated!