Bank letter says I need more coverage
One of the regular tussles here in the office is with banks. They all seem to want you to insure your house for the loan amount.
The bank then tells you we aren't cooperating and they "have to" place extra coverage on your house.
You only have to insure your property to the Replacement Cost of the improvements. How much to rebuild your house. California has a Civil Code Section dedicated to this premise.
Next time the bank tells you the loan amount is the minimum insurance required push back. They just want you to spend money without value coming back