Homeowners insurance for rental property

[Matthew Basa]

Hello BP community, which is more recommended when insuring your rental property- insuring it for its replacement cost or just the cash value? Not sure if one is definitely better than the other or if it’s just based on someone’s personal level of risk tolerance. Thank you. 

[Nathan Gesner]

I prefer replacement cost. Actual Cash Value may save you some money up front, but you'll kick yourself if you ever have a major loss.

On the other hand, how often do you have an actual loss?

You need to weigh the options and choose what you think works best for you.