In today's world.....and current housing market...it is vital to have replacement insurance!!!!
What many people don't realize, is though the "value" of a house may have gone down in a fair-market re-sale (what someone is willing to pay for the house)...THE COST TO REPLACE THE DWELLING HAS NOT! Or if it has, it is not nearly the same reduction hit as houses have taken in many markets.
Insurance companies are probably hoping that when people find out that the house they paid $350K for 2 years ago, is now worth $275K on the fair-market...they will reduce their insurance coverage.
Well, that's fine, provided nothing happens to the house. Cause if the house gets flattened by a tornado, the insurance is only going to pay what the insurance coverage is.
But a homeowner's going to be in a world of deep do-do, if it still costs $350K to replace. And mortgage companies want the house back in, at the very least, the same condition it was in when the mortgage was taken out.
Keep pics Brian, of all that you are doing, and soon as it's done, get your agent out there to look at it. I'm sure you are keeping all of your receipts too. In the meantime, make sure you have a replacement policy, not a cost one.