Insurance Premiums seem high..

[Alan Diamond]

We are purchasing our first duplex and I received quotes from a couple sources for insurance.  The house is approx 2100 sq ft, and purchase price is $56k.  The comps in the neighborhood are similar.

This is what I received for 40% replacement:

Dwelling (Coverage A)  103,200 $883.00

Dwelling Extension 28,000 $28.00

Personal Property (Coverage B) 5,160

Business Liability (Coverage L) each occurrence  $300,000

Business Liability (Coverage L) annual aggregate   $600,000

Premises Medical Payments (Coverage M) each person   $1,000

Deductibles

Policy deductible 1,000

Total Annual Premium 911.00

---------------------------------------

The 100% coverage was set at $258k, with premium of $2143.  I know to bump up the deductible to $2500, but no 2100 sqft house in this city ever cost $258k (without land).  So, it seems that the best path is to set the placement at 50% of full, with a $2500 deductible.  I don't under stand how they calculate the $258k, that is VERY high for this area.  But, I'm sure they don mind me paying higher premiums...

Thoughts?