ACV vs. Repair Cost

[Daniel H.]

In the city where my property is located, there are many three-story apartment buildings with a unit on each floor. These are no longer allowed to be built new in the city. So replacement cost of my two buildings is $450,000 each. I paid $82,500 for each building.

They are currently insured with replacement value but I am thinking of switching to actual value. If one of the buildings burned down I do not plan on rebuildsang. Actual value would cover my loan amount and I could just go purchase a new property, right?

Is there any reason that I am missing why I would want replacement cost?

What if there was partial damage, like a tree falling through part of the roof? How would that be covered with ACV vs. Repair cost with the numbers I mentioned above?