We are getting quotes for homeowners insurance on a property we are buying, and the estimated replacement cost for each quote is wildly different. We've gotten five quotes so far, and gave the same information to each insurance company. The "Replacement Value" we've been given has been $110,000, $210,000, $225,000, $250,000, and $350,000. Each company also had an option for us to change the suggested Replacement Cost Value, but only in a small range around their estimated value.
It seems weird that each company is so extremely different from the others, and the premium and deductible are based on the listed replacement cost, so we can't even compare apples to apples with the premiums to figure out which is the best option.
In the event of a total loss, if the actual cost to rebuild is higher than the estimated replacement cost, are we just out the extra amount over the listed replacement value? The replacement value is also significantly lower than the actual purchase price of the property.