I am in the process of purchasing a house, and trying to decide on insurance. I have gotten about 6 different quotes. The purchase price of the home is 129,000 but the appraisal came back at 140,000. Which is the amount I need to insure. Does anyone know what a tier factor premium is?

Your purchase price includes the land and the insurance doesn't cover the land because if the home is destroyed the land remains.

The appraisal breaks down the cost for the land and the structure separately. Look on the appraisal for the cost of the structure and use that figure to determine how much insurance you need.

Tier factor premium is something that some insurance companies use to determine what rate you qualify for which may factor in credit and prior claim history.