There are three different “values” homeowners often confuse, and only one is the right answer for insurance:

• Replacement cost — what it would cost to rebuild your home today, with current materials and labor. This is what your dwelling coverage should be set to.
• Market value — what the home would sell for. Usually higher than replacement cost because it includes the land, so insuring to market value over-insures you.
• Original purchase price — irrelevant. Construction costs may have risen 30–50%+ since you bought.

For personal property, most carriers default to 50–70% of dwelling coverage; high-value items should be scheduled separately. For liability, $300k–$500k is a reasonable baseline, with an umbrella policy on top if you have meaningful assets, rental properties, teen drivers, a pool, or a dog.