I'm interested in knowing how others handle the requirement for Hazard Insurance. To limit exposure some say that a structure should be insured for the amount of the loan....others say that a structure only need be insured for the amount the appraisal states the structure is worth, in other words appraisal less land value (similar to flood insurance). What are opinions on this from others?

We require the insurance amount to be for at least the amount of the loan or 100% replacement coverage if the amount is less.

We require that the amount of coverage must at least equal 100% of the replacement value of all insurable improvements to the property.