Insurance for a 4 plex

[Sunny S.]

Hi,

Is this a true statement for insurance for a 4 plex ?

• The dwelling must cover 100% of the rebuild cost estimate OR the dwelling must cover the loan amount, provided it equals no less than 80% of the rebuild cost estimate.

i asked because the price for a 4 plex cost 180k and the replacement cost is calculated by the insurance agent as 1M to 2M due to which the insurance premium went high. I want to know if there is a way to handle this situation since the loan amount is less than the 80% of the rebuild cost estimate. 

To rebuild a 40 year old 4 plex now cost very high and insurance seems calculated based on it.