Had a chat with our insurance agent recently; she wants us to increase our insurance coverage on our home in old palo alto, which is currently calculated based

Had a chat with our insurance agent recently; she wants us to increase our insurance coverage on our home in old palo alto, which is currently calculated based on $350/sq.ft. rebuild cost. She said that clients in the burned-out areas in Santa Rosa were being quoted much higher rates, and although she admitted that was partly due to a large number of people competing for contractors all at once, she believes $450 is a more realistic replacement cost basis. That would be also based on replacing the existing structure, which is single-story, no basement. What almost always happens when an older house is sold in this area, is that the property sells for between 1M and 2M, is immediately scraped and replaced by a two-story-plus-full-basement (with home theater and au-pair apartment), which then sells for 6M-8M with a profit of circa 1.5M.