Insurance: replacement or actual cash value

Hello Friends,

is there a good rule of thumb in selecting replacement vs. cash value for rental properties, that are nothing special 3Bdr, 1 bath, 1200 sq. ft, age about 50 years…? ARV about $50,000.

thanks…Bruce :anon

ACV is going to be what the unit is currently worth. Replacement cost will be higher due to having new construction with today’s higher costs for labor and materials. Therefore, your premium will be higher for replacement cost than for ACV.

Thanks for your reply and advice! Bruce