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Nich J.
  • Minneapolis, MN
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Insurance for Triplex

Nich J.
  • Minneapolis, MN
Posted Aug 15 2017, 10:27

I have a Triplex in Minneapolis that I recently purchased, and I'm questioning if i'm working with the right people and have the correct insurance policy on it.  I told my agent all I wanted was a policy that allows me to pay off the loan in the case of a catastrophic event.  The policy I agreed to had a dwelling coverage equal to the amount i paid for the property.  Four months into the policy I receive an endorsement letter and invoice from my Insurance agent that says after the carrier did an external inspection of the property they needed to increase the dwelling coverage by $90k to reflect the replacement cost of the property in today's market.  When I asked what this was all about I get a response saying that they convinced the carrier to use their reconstruction calculator and agreed to bring the increase down to around 59k.

My question to other landlords and insurance people out there: 

1.) Is this a weird situation or is this business as usual?  

2.) Do I need to have dwelling coverage to cover replacement cost or can I insure based on what i have into it?

Appreciate any feedback.  

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