Dwelling Coverage and rebuild costs too high?

[Coady Watson]

Hey all, was hoping I could get some advice from other investors in RI. Im in the process of buying my first property. Its a 3 unit multi family. Purchase price is $207k, it appraised at $235k. 

Im to the point where I need to get a homeowners policy ready. The problem Im having is the 2 companies I have talked to so far came back with insane rebuild costs. First company said $770k and the second said $690k. I understand the rebuild cost can be higher than the market value but 3 times? 

Does this seem accurate? Curious to see what others have there dwelling coverage at.

Thanks for any help in advance.

-Coady