Insurance questions and actual quote
This is our first single family home and we are getting quotes for insurance. Here is what an agent came back with. At first glance, I am concerned about it not being replacement cost, should I be? We think it will appraise between $60,000-$67,000. We will of course extend liability from our personal home and get an umbrella. Do you think the below is a good quote? And is their any other insurances we should be thinking about other then mentioned above? This is our only property. Thank you for your help.
Agent.
"Here is the deal with Rental Properties with Farm Bureau. Our policies insure for the Actual Cash Value of the property and not Replacement Cost. Farm Bureau also does not cover Sudden and Accidental Water Damage. Many people like our rental property coverage because it is not very expensive and still covers the major perils that could happen to a home.
We have our own database that we put in features of a home and it comes back with a value of insurability meaning it is not always the price you pay for the home. Our value to insure was $88,500 value on the home and that came up to only be $545 per year."