Insurance for 3-Plex

[Jesse Smith]

I'm having trouble finding a straight answer on this one.  What kind of insurance should I be looking for on a 3-plex?  This is a former single family residence that has been converted to three living units.  I also plan to eventually convert the attached garage to a fourth unit.  

State Farm sent a quote for a "CMP Apartment Policy," with an annual premium of $3,898.  Compared to the policy on our duplex, which only has a premium of $1,120, this seems crazy high. 

• What kind of policy do I need for the property?
• Should I insure for full replacement cost, mortgage amount, or something else?
• What other considerations?