Need advice on how much to insure

[Amit S.]

We recently moved from Sugar Land, Texas to northern Virginia.

I'm hanging on to our home and it has been leased.

It turns out that dwelling/fire insurance is hard to find and extremely expensive in our zip code... on the order of $4-$5000 per year.

Should I be thinking of insuring for the full rebuilding cost of the property or rather an amount closer to the amount I owe on the mortgage. In the event of a catastrophe, i could probably just pay off the note and sell the land rather than rebuild, correct?