Given the age of this thread, the original author may have already come to a conclusion on this issue.

That said, my recommendation is to insure appropriately if not slightly over insure. To off-set the costs, take on a higher deductible. The reality is that while people often carry $1000 deductibles, you will not use the coverage until a loss gets at above $2500 or so. See what your agent can offer at that or even a $5k deductible and retain the risk that way.

It’s better to come up with $5K in the event of a loss for a deductible instead of “worst case, I could find an extra $100K or $200K if needed to rebuild.”