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Satya Nagarajan
  • Investor
  • Portland, OR
4
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25
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Actual Cash Value or Rebuilding Value coverage?

Satya Nagarajan
  • Investor
  • Portland, OR
Posted Jul 10 2016, 17:28

Hey everyone, I am buying my first property - a 4 unit building for $127K. The property will be in my personal name, not an entity. I am definitely getting liability coverage up to $1 million and loss of rents for up to 1 year, but I'm not sure how much coverage to get for fire, flood, vandalism, etc. I'm calling around getting quotes, and each insurance company is estimating my rebuilding cost a different amount. If I choose the rebuild option, how do I determine how much coverage to get? The cost to rebuild will definitely be much higher than my purchase price. Or would it just be better to be insured for ~$130K? Any insights would be appreciated.

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