First of all, how much you paid for it, or what it's assessed for, completely doesn't matter. You insure your house to get it FIXED if something happens, which means, cost to FIX or REBUILD the house - not "assessed value" or "foreclosed value". Mortgage cost is completely irrelevant.
You don't mention at all, how much coverage you have, what kind of policy you have, or where the house is located - but odds are, if you have your house insured for LESS THAN $200 per square foot - you could end up with a serious problem come claims time.
You probably want replacement cost coverage on house and contents. You'd probably do well with "building ordinance or law" coverage if the house is more than ten years old. If you have a basement, "backup of sewers and drains" is a really really good idea.
Average cost depends on the location, age of house, protection class, construction, etc. Not knowing ANYTHING about the coverage or the house besides the very little amount you put in, it's impossible to say if you have a good price or not.
The ONLY way to know if you have a good deal, is by shopping around.