DP1 vs DP3 Coverage - Which would you choose?

[Basit Siddiqi]

Hello Everyone,

I am closing on my next investment property next month and I am down to choosing between the below 2 insurance policies.
I will have to admit - I chose the cheapest insurance policy on my first rental and I did not look at anything besides cost.
I am looking at it with more detail now

First Insurance Policy
Cost - $626
Coverage - DP1 for $90,000
Personal Property - $2000
Premises Liability $500,000
Medical Payments Per occurrence - $25,000
Medical Payments per Person - $1000
Deductible - $1000
Fair Rental Value - $12,000

Second Insurance Policy
Cost - $730
Coverage - DP3 for $249,000
Fair Rental Value - $49,000
Additional Living Expenses - $49,800
Personal Liability $500,000
Medical Payments to Others - $3,000

Information on property
Old property constructed in 1880. The property needs some work when I purchase it.
The property is 3 stories with 1700 Square Feet.
Purchase price is $54,000 and the Loan will be 75% at $40,500

I am clueless when comparing insurance policies because they don't necessarily use the same terms.
From what I can tell - the big difference between the 2 policies is DP1 which is actual cash value and DP3 which is replacement cost.

What is every's thoughts?
Which policy should I take and why?