I just updated my insureance to reflect that my current residence will become a rental property. I was a little unsure about certain coverages. Basically they are saying the replacement cost of my house is 270. Current appraisal is 350.
Let’s say a fire comes through the neighborhood which is not that far fetched in our area. Will I just lose out on 80k in equity? They said I could choose an additional coverage and get up to 25% more coverage which still won’t cover the total equity in the place.
So my question is, do I spend the extra 250 Ish a year for the additional coverage? Seems like a small price to pay but let’s be honest the chances of that happening are very low.
Also I’m curious if renters insurance will provide something from the tenant?
Any suggestions on types of coverage would be greatly appreciated.
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