I have a rental dwelling policy on my property (which includes loss of rents). My policy is good for $128,000, I owe $122,000 on the property. My insurance company quoted repairs of over 150k minus depreciation, I assume my depreciation starts at the policy limit of 128k.
Does this sound right? The home policies are based on the price of the house, if the repairs cost more than the property is worth then how does that work?
My biggest worry is that I will not get enough money back to pay this property off.
Has anyone gone through this before? My insurance company is state farm.