Skip to content
Insurance

User Stats

31
Posts
2
Votes
Kenton C.
  • New York City, NY
2
Votes |
31
Posts

Replacement cost value much higher than what I bought the property for?

Kenton C.
  • New York City, NY
Posted Jan 4 2015, 17:10

I am looking for replacement cost value DP3 insurance policies on my first rental property. I paid 71,500$ for the property, and it has brand new roof, plumbing, electrical, and floors. 

I am being quoted for 171,000$ in dwelling insurance on DP3 policies. My question is

1) Am I over-insuring? Why are they insuring me at 171,000$ to rebuild the property when I can buy a new one for $71,500?

What am I missing here? Would it simply be enough to insure it at what I paid for it, because I don't see how the cost to rebuild can be higher than the cost of buying a new property?

Loading replies...