On a similar note, I recently read an article on fire insurance for one's home. The writer (a consumer advocate type) was warning that one should not use the current value of the structure to estimate the amount of insurance needed to rebuild a home. In his opinion, the cost of rebuilding a structure is usually greater than what the structure would sell for in most markets. Part of that is rebuilding to the newer building codes, but much of it was just the cost of material and labor itself. In other words, insure for more than the sale price of the structure. YMMV.
I agree with this - but it can go both ways. In our case the cost of rebuilding is SIGNIFICANTLY lower than the cost to buy the house. The land is the pricey part.
I recently shopped home owners (and land lord policy) - and most quotes sited a price/sf to rebuild. One was ridiculously low so I had them re-quote at a more realistic price.