Replacement Cost vs. Cash Value Insurance

[Kelli Dubendorfer]

My husband and I recently purchased a 4-unit apartment building that we will also be using as our primary residence.  We are shopping around for homeowners insurance right now and are having a difficult time deciding whether to go with the cheapest annual premium - which is a policy insured at cash value - versus the more expensive annual premium that covers replacement costs.  We are looking for information about the trade offs between a replacement cost policy and a policy insured for the actual cash value.  We appreciate any information! Thanks.

[Alexxander Teplitsky]

Hi Kelli,

As a former insurance agent (for Nationwide Insurance) - when loss occurs, nobody complains for having too much insurance.  May be this idea will help you make your decision.