Insurance amounts

[Kenneth LaVoie]

Hi All
I am trying to determind a couple of things about landlord insurance: Specifically, how much do I REALLY need. I use State Farm, and have been for years and years, but I am getting some more quotes right now. My confusion is in how much to insure the buildings for. What I'm running up against is "rebuild" values running 2-3x my purchase price for larger homes and apt. buildings. Example, I just closed on 2 unit for 102k -- rebuild is $353,000, so I've opted for a 40% option (40% of actual cash value) which is 142k. Now my agent and I had a meeting and he explained the "nitty gritty" and said that I should be fine on a "total loss" -- However, it might get touchy with a "third or half" loss (top story burn, etc.) -- then the amount MIGHT not cover everything -- He says that once you get up to 60% give or take, things usually work out. I am wondering what other landlords do? (the liability is 1,000,000 by the way and we have a 2mil umbrella)