Can you get homeowners full replacement coverage up to a specified amount IE 500000 even if the actual replacement cost is 6500000?

Answer 1

If you can support that your home's true replacement cost is $500,000 instead of $650,000 - which is different from market value OR tax value, your insurance company will probably reduce the amount of coverage at your written request. However, if you owe more than $500,000 your mortgage company may not approve and you may have a bigger problem to deal with. Coordinate with your mortgage company in advance, and ask them to remove the land value from the homeowner's insurance requirement. That said, however, talk with your agent first because some things, like additional living expenses and debris removal - come out of the coverage limit - and you don't want to be underinsured!