Advice on home insurance

I'm looking at possible changing my insurance to see if i can get any better deals. Currently I'm through State Farm and my dwelling coverage is 178,200 for my house that's roughly 1823 square feet and I paid $695 last year. The agent I spoke to said that my coverage looks low and that you should usually look to cover 1 square foot for $150 or near that. So she quoted me at $125 a square foot for a total of $231,000 in dwelling coverage for a total of $734 which is about $3 more a month compared to what I'm paying now.

So my question is, is this correct info? I doesn't seem like too bad of a deal to me. This is through Safeco as well. They had lower rates for auto as well, so I'll probably switch that too. I just wasn't sure about home insurance and what the best practices are.