Ok just got everything finished on my building addition. Landscaping, concrete , cabinets DONE! So With the high cost of building materials I decided to call the Ins co and see how much coverage I have on my detached building/shed. Girl said 10% of house , ok got 250,000 on house structure so 25,000. BUT 30 by 40 , two garage door stick frame insulated with 12 by 30 finished game room 25,000 wouldn't touch it at todays prices. Contents are covered under different part of policy so I'm good there.

Get a quote on increasing coverage to amount you feel comfortable. Also get quote on a higher deductible for what you call building addition. Here in NY it would be called detached structure.

Sorry Other Structure.

Put the premium amount into the stock market and in 10 years you wont need insurance.

LOL not getting in at 32,000 PLUS house burns before then ? 1200 per year for 275,000 structures , 180,000 contents. PLUS they paid for new roof in 2014 @ 9000 bucks.

Should have replacement value insurance.

IT was a bit tongue in cheek, But if I would have saved all the premiums my business paid in over 25 years minus a couple minor claims, Placed it in mutual funds,I would be a very rich man today. I believe you should only insure the amount you could not do with out, not what you would like if something bad happens.
PS, I am not a financial genius, I have done alright, but not a genius.

There's a difference between replacement cost and market value. In your case, you should insure it for replacement cost so you can have it rebuilt in the event of a total loss. Insuring for replacement value will also cover with new parts in a partial loss claim, less your deductible.

Nice looking building.

Used to be an insurance agent. Not sure about detached structure coverage, but on a dwelling, it is important to insure for 80% or greater. If you insure a $200,000 dwelling for $100,000, that is a 50% coverage ratio. If you then have a $100,000 loss, you are only covered for 50% and you receive $50,000, not $100,000.

The detached structure coverage is probably different, so you should ask your insurance company. You should know what your coverage will be BEFORE you have a loss. You might be better with a farm policy. I don't know.

I was thinking today about home insurance, with the way lumber prices are there’s no way we could build back what we have .