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Dwelling is usually 100-125% of estimated value. “cost to rebuild”
Warranty and insurance are not remotely the same thing. You should get multiple quotes on home owners insurance and go with a good price/deductible you can afford
Mentor
$500/year for a homeowners insurance policy sounds very low. How much is the house? What liability limit did you select? What contents coverage amount? I pay a lot more than that for a 1400sf house with a $500k dwelling coverage. My primary house has about a $1.1M dwelling coverage and I pay over $3000/year.