What is the average worth of a house lot as a percentage of the whole
property including the house? Since money is very tight its one of
those hard choices I will have to make. My 1200 sq ft house is on
8000 sq ft lot in a modest neighborhoods and I think the property si
worth $140K. The thinking is that the money not spent in insurance
can pay for rebuilding on the same lot. I am in a very low fire risk
neighborhoods and being the only house in a corner lot with a single
neighbors some distance away, I have even lower risk.



Your insurance agent should be able to be of some help. They should be
familiar with building costs in your area, and such, and can help you
determine the correct coverage. You can review your existing coverage with
any competent agent anytime, to be sure your coverage level is adequate. In
my area, for new construction, there is about a 4 to 1 ratio on land value
to house.
In other words, if a lot is selling for $100K, the target price is to build
a house in there for a total cost of about $400K. Those are very
approximate. If you are really worried, have an appraisal done to see what
the current cost of completely rebuilding a similar structure on the same
lot would run, and see if your policy would cover that.
Dave