Replacement Cost vs. Cash Value Insurance
My husband and I recently purchased a 4-unit apartment building that we will also be using as our primary residence. We are shopping around for homeowners insurance right now and are having a difficult time deciding whether to go with the cheapest annual premium - which is a policy insured at cash value - versus the more expensive annual premium that covers replacement costs. We are looking for information about the trade offs between a replacement cost policy and a policy insured for the actual cash value. We appreciate any information! Thanks.