Insurance and Information For Real Estate Investors

[...] insure investment units for ‘Actual Cash Value’ (ACV) coverage instead of ‘Replacement Cost’ (RCT) coverage for the simple reason that there is a fundamental misunderstanding [...]

[...] needed to adequately protect the property against loss, known as the reconstruction or replacement cost, we must first need to know the physical characteristics of the property such as the square [...]

[...] times a day by well-intentioned investors to improperly insure investment units for ‘Actual Cash Value’ (ACV) coverage instead of ‘Replacement Cost’ (RCT) coverage for the [...]

[...] of the property – as well as its geographic location – an estimated replacement cost value is determined.  This is the amount that insurance companies provide coverage for.& [...]

[...] , construction grade, and so on. As addressed in another question, the reconstruction or replacement cost value is not a number simply chosen at random. Most companies use the Marshall & Swift/ [...]

[...] .”  The language itself may vary some, but that is a good example of what your insurance clause usually states.  If you purchase insurance with ‘actual cash value’ [...]

[...] the Named Insured (Policy Owner) has the legal authority to make any modifications to the insurance policy, file claims, cancel the policy, or receive refunds. [...]

[...] ’s name. In most cases, the new buyer (or perhaps the seller) can send proof of the insurance policy being paid in full with money outside of this account to the mortgagee and request that [...]

[...] clause and the mortgagee may, as is its legal right under the terms of the mortgage, force-place coverage to protect its interest in the property and charge the extremely high premium directly to [...]