Home insurance policy amount?

[HipGnosis]

I am shopping for home insurance.  For my residence.

The insurance companies are telling me I should buy a policy that covers the 'rebuild' cost, which is considerably more than the property is worth, and therefor the premium cost is higher.

I have no affinity to my neighborhood and wouldn't put more money into a property than it would be worth (because of the worth of the neighboring properties).

Do I need a policy (other than liability) for any more than the property is worth?

[Drifterrider]

If you have a mortgage you need enough to satisfy the loan.
If you have own the property you need enough to satisfy YOU.

I could not find any company to insure my house in NC for less than 80% of rebuild.  I, like you, would never rebuild the house in that area (I'd clear and sell the lot).

Companies are betting they will not pay for a loss so they want as much from you as they can get.  IF you are willing to take the loss, you don't have to have insurance.  You could just buy a liability policy to protect your other assets.