Chicago rental, property insurance.

[Wen Y.]

What do most people who own rental do in metro area?

I am planning on closing on the purchase of a two flat in the South Side of Chicago, in a high crime area. Allstate quoted me $3600 for a replacement value of 380k, for a property that will likely close at 50k!

My current home is in the gentrifying north side Logan Square. Per Allstate, same replacement value of 380k, at $1600 per year. Go figure.

What companies have you all used? I see some people purchasing replacement value policy, and other purchasing "at cost" either at the purchase price / mortgage cost.

How does one purchase umbrella policy for liability? i.e. if the tenants sue me? Is my current homeowner insurance for my own dwelling protecting me? or is the protection coming from the rental house insurance?

Wen.