Rental Dwelling Insurance

[Jason C.]

I wanted to see if anyone can provide feedback on Rental Dwelling insurance. 

I currently use Statefarm and my premium just went up from $450 a year to $500 for the year. Now I know this isn't a big jump in cost on a dollar basis but it close to 11% on a percentage basis. This always happens with Statefarm (every year) and I am looking into other companies for a quote, but my question is how much Dwelling coverage do you really need? 

I purchased this home for $191,000 last year and the first policy covered it for $185,000 and the renewal policy has been bumped up to $199,500. Also, there is additional Dwelling extension coverage for the detached garage that went from $20,000 to $21,700. I feel like this is too high and too much coverage for a home that cost $191,000 and I don't know how they come up with these amounts, is it regulated? ... any thoughts? 

Lastly, the business Liability coverage on an occurrence basis is $300,000 and on an annual basis is $600,000. I really think this is way too much and I have no idea what it even covers or protects. My medical payments to others is set at $1000 and that's honestly the only thing I can ever see myself needing to use. If the medical costs go over that $1000 does the business liability kick in to cover additional costs? 

I really can't stand insurance agents because they stab you in the back while they are messaging your feet. Any feedback would be greatly appreciated! I love this community and BiggerPockets!