The short answer is you need to cover the replacement cost of rebuilding the structure as new if it were to be totally destroyed. Now how much coverage that requires is kinda arbitrary because if you got 10 quotes on rebuilding your house new, you would have ten different opinions.

As far as the quotes you received, without knowing the deductibles on each, It's hard to compare.


Also, don't just go for higher coverage. For instance If your replacement cost is 350k but you decide to insure for 500k, you'll be paying higher premiums, but if your house is destroyed, you'll only recieve the benefit of what the actual replacement cost is, so it doesn't make sense on its own to get higher coverage amounts if a lower amount will cover the damages.