first time buying insurance: SFH rental

[Charlotte Edwards]

A few questions on insurance questions since this is our first home purchase, they keep popping up.

If we get just the ACV policy and...worst case..it's destroyed, can we just take the money, sell the land and reinvest in another property? I know that policy only pays out the depreciated value up to a certain amount, which is why I think replacement value is better. But my husband says it would be better to just use the money to put into another house, not go through the hassle of rebuilding.

Also, why would we pay for $2000 coverage for personal property when the only things that are ours are the fridge, stove, dishwasher, washer and dryer? Even if they all were destroyed by something, after we pay the $1000 deductible, it won't cost more than another 1000 or so to replace them.

And our realtor mentioned to me that she pays about $500/year/rental...so hubby wants me to find the same policy that they have. They've already connected me with, I assume, the broker they use. But this broker's policies came up higher for the replacement, and much lower for ACV (but way cheaper. Only $300/year and lower on the projected value of the home). And I'm not overly excited about this realtor (they've not been as helpful as I thought they would be for a first time homebuyer), so maybe the number I was told was slightly exaggerated. Or am I just overanalyzing things? I'm starting to get stressed out by all this and rethinking that this was a good idea to do. I thought I knew a lot, and I do, but it's not as much as I should know.

Thanks for any suggestions or comments you have in regards to this.