Buying a house and the bank wants to see an insurance policy purchased up front, this is a little different than I remember the last time we bought a house as they took care of everything. My question is how much am I required to insure? The loan amount will be for around $ 300,000 but it’s a standard ranch style house about 2200 square feet, nothing special about it. The insurance company says it doesn’t need to be for the exact loan amount. About how much would it cost to build a new house if a meteor crashed into it?