The appraissal has no effect on the amount you should insure your house for. You need to insure it for the amount it would cost to rebuild it. This could be more or less than the appraisal. Insurance company's have sll sorts of tools to estimate this amount. You may need to talk to your agent directly to figure out what amount you actually need. If you underestimate you are SOL if your house burns and you don't have enough to rebuild but if you over estimate you will not get back more than that amount and will have paid extra over the years for nothing.