Note Insurance - Per UPB Or Per Purchase Price?

[Eran Lifshitz]

This is a questions I often ask myself - 

When you acquire a NPN note and you would like to insure the property by yourself, do you insure it per the UPB value or per your purchase price?

For example - You acquire a NPN note in $60K while the UPB is $120K.

If you insure per UPB, does it matter if the house BPO is under or above water (meaning, per the example, if the BPO is $100K or $150K)?

In the NPN notes I acquired I used to insure per the purchase price to cover my investment, but would like to hear your thoughts.