home insurance dwelling coverage limits ?

I have currently my home insurance for dwelling with limit of
370K. Insurance company’s estimate to rebuild the house is 230K. According to them I am over-insuring myself. However, my mortgage company wants me to keep the insurance upto or higher than loan amount. Why would they want that ? And if I keep ( in confidence with the mortgage company) lower amount what complications in future can happen?

Register New Account
Reset Password