Change of home insurance provider - increase in replacement cost

Bought a SFH 5 months ago and went with Farmers insurance at the time of closing. Now shopping for insurance and switched to Allstate since they gave me a home insurance quote for 25% less. At the time of quote, Allstate considered the same dwelling replacement cost. 2 weeks after the switch, Allstate contacted again saying they did an inspection of the house and said dwelling replacement cost is lower than they originally considered. Original dwelling replacement cost: 635K Revised dwelling replacement cost (after inspection): 812K Allstate now gave me two options (a) challenge the inspection done by allstate for dwelling cost by providing recent appraisal showing replacement cost of the home (b) Pay increase in premium due to the updated dwelling cost The house is 1974 built but renovated recently (no need to make any renovations for next 5-7 yrs minimum) I can share my appraisal report and challenge their inspection so I can enjoy the savings in premium (28%) but is it a correct decision since insurance is for hardship and going for increased dwelling replacement cost is best incase I end up using insurance. TC: 310K #housing #insurance #homeinsurance