Some homeowners make the mistake of thinking they need to get the dollar amount of insurance that is the same as the market-value of the home. This is not the case. Instead, you should insure your home for the amount that it would cost to rebuild the home from scratch. The rebuild cost of a property is usually far cheaper than its market value. That is unless you live in a period property or unusual type of home where the rebuild materials may be hard to come by and expensive to purchase.