So many people like to buy investment properties some even expand and develop a full portfolio. One thing they have in common is not paying full price. Now the investor buys this property to see two things occur; The property appreciate and the monthly cash flow it should bring.
So many times when you are not buying a traditional home insurance policy you have a little more flexibility with the replacement value of the home. One key to remember is you need to rebuild a structure that you can rent for the same money you were receiving before it was damaged/destroyed. You do not need to build the same exact home remember this is a money making venture. Let’s rebuild a structure that can earn money.
About that monthly money, I always aim to have at least one year of rent covered by the insurance policy. Make sure your policy has this built in, as long as your rent is in line with the fair market rents of the area this will work.
Just some ideas, use as you wish