But if your home is of average quality for your community, the figure your agent provides should be pretty good. For example, in my area the average replacement cost is around $175-$200 per square foot. So if you have an average house that is 1500 sq feet, you would probably be looking at $300,000 in coverage. The cost per square foot estimate came directly from our Total Loss Adjusters…their entire job is rebuilding people's burnt down houses. Now, if you have marble countertops and hardwood floors throughout, we'd want to raise that figure accordingly, to maybe $225-$250 per square foot.

Ask a local agent for their input…if they are worth a darn they should have an average estimate for you. If you want a figure based upon your exact house…pay for an appraisal.

EDIT:

Ignore the person who asked for your purchase price. Purchase price has absolutely no bearing on the replacement cost. Replacement cost is what it would cost to rebuild the house from scratch if it burned to the ground. Purchase price is influenced by many factors that don't impact replacement cost (market conditions, size of the lot, if it's in a desirable neighborhood or not, etc).