Len, the answer is a lot .... remember 'Agents' are paid on a commission bases. The larger the policy (numerically) the more they make. That said, the HO policy may be (value wise) reasonable as the number is based upon 'replacement value,' not market value
Insurance underwriters take into account the cost of replacement in a 'normal construction market place,' not what's going on in the real world. And, at the moment, we're not in a real world.
The General Contractor who built my new home (2 years ago) and I were chatting about this exact topic earlier this week. I knew what I paid, I see he's got three new starts on my street and one had the Realtor Info box out front. The gist of the conversation was the 'replacement insurance' was a realistic number 'in a normal market place.'
Which is exactly where were not.
Cringed when I looked at that ..... view lot (mine will go away when they build out the lots across the street), 200 square feet larger and selling for $2,500 LESS
than what I paid for my (smaller) home 28 months ago.
The why? He's working for 'wages, not profit' to keep going.
As for 'contents,' this number is always just a percentage of the 'replacement cost.' 20% sticks in my mind, but don't "quote me" on that one.
The location of the property may also 'influence' the premium?