Replacement cost-2 story to 1

[Shawn H.]

I have a 2 story duplex...3 bd 2 ba 1650 sf each unit. The insurance company came up with a replacement cost of $412,000. I don't want to pay premiums for this much coverage. If a total loss were to occur, my plan would be to rebuild either a 1 story sfh or a 1 story smaller duplex(825 sf each unit). Either way I would be on the same foundation/footprint. So as long as I am insured for the approximate replacement cost for a total of 1650 sf ($190,000+/-) I would be covered correct? Is this allowed by insurance companies?