My house is not worth that much, why do I need to insure it for that amount?

At the time of loss, the insurance company will not be buying your home but rebuilding it. Rebuilding a home often costs more than what it took to build it originally. Consider these factors: Temporary repairs, demolition and removal of debris, building permits, engineers and architects, outdated code compliance, landscaping, repair or replacing the foundation – just to name a few costs not realized.