Insurance coverage amounts

[Nick Slagle]

Property Insurance on a duplex

Let me get to the point:

I've been focused on getting this deal closed and did so yesterday.  Two duplexes purchased for total price of $200,000. ($100k each in one deal)

I am going to do some repair work and expect ARV to be close to $140k each.

I'm reviewing my insurance policies and they are identical but I don't understand the amounts that my agent built the coverage around.  It seems to me every coverage is too high or unnecessary all together.  What are your thoughts BP?  Thanks in advance.

100% replacement cost

Dwelling $177,000 

Dwelling extra replacement cost $35,400

Personal Property $8,850 

Business liability $300,000 each occurrence

Business liability $600,000 annual aggregate

Premises medical payments  $1,000

Loss of Rents  $0