What to do when FMV of property is WAY below Replacement Cost
I am in the process of buying my second property when the insurance agent calls and says that none of the companies they represent will insure my property for replacement cost. Best they can do is an ACV of 148% of market value. The property I am buying is over 100 years old. I have been unable to get an insurance company rep give me a straight answer as to what the useful life is of walls or a floor. Since most claims are for partial loss and my policy is for ACV I have no way of knowing if after depreciation is taken out, what will insurance pay me. The annual insurance premium for what I can get is just over one months' gross rent.
I am buying the property for $67,500. Max insured ACV is $100,000. Replacement cost is $170,000.
Has anyone else navigated a similar situation? Any advice on an insurance company that will insure replacement cost without taking all my profit?