I've fought this battle with my home insurer a number of times. They say it doesn't matter how much houses sell for in your area, but what the replacement cost would be for a similar house to be built. They value my home at about 180% of what we paid for it and that is without the value of the land! I shopped around and found other insurers that had a lower insured value, but the premiums ended up being the same or higher. All I could do to lower my premiums was to decrease the insured value to 85%, the lowest they would go, and increase my deductible to $10k.