The problem in our real estate market of Buffalo is there is a difference between market value (or Actual Cash Value) and replacement cost, sometimes a big difference. And in some places like North Buffalo, a 3/3 double is now worth $280,000 but to replace it would cost $530,000 in today's dollars.
The choice a landlord needs to make is do I carry Replacement cost or Actual Cash Value? Most parts of Buffalo where the values are less (like Lovejoy for example) RC does not make sense. The reason? You have to rebuild at that same location to use the replacement cost coverage. If you do not, then the loss settlement is based on Actual Cash Value anyway. Many real estate investors would prefer to take the insurance proceeds and go buy something else. They do not want to put the damaged property back together.
Then we have the issue of getting claims covered before an event happens, like with Underground Utility coverage. Where your sewer, water, gas & electric lines are covered up to $10,000 and in an older infa-structure city like Buffalo, this would be important. Our insurance office has 7 such companies that offer this the the landlord community, where some big, national, name-brand companies do not.
Finally, do you deal with a true expert in the landlord space for insurance? We know the marketplace, know the coverage's and can help the real estate investor's because we insure over 150 of them. This is what we know and have the insurance companies that WANT your real estate business. Call us 716-684-3203