I have purchased 2 x 3 BR semi's ex State housing, solid brick in a country town. 100's in the area. Purchase price $50,000. Land value is estimated at $5,000.
Insurance companies assessment of replacement value is $150,000.
Possible Scenario: Total destruction of 2 x semi's by fire.
Insurance Company would pay out $150,000. However I could clear the block, sell the block and buy the 2 x semi's next door all for $50,000.
Question: How much do I need to insure the property for?
Insurance companies assessment of replacement value is $150,000.
Possible Scenario: Total destruction of 2 x semi's by fire.
Insurance Company would pay out $150,000. However I could clear the block, sell the block and buy the 2 x semi's next door all for $50,000.
Question: How much do I need to insure the property for?