Rental Property insurance...why so EXPENSIVE??

[Pamela D Williams]

Hi everyone!  I'm a new landlord (lady?)...just purchased a duplex and closing on a fourplex on Thursday. My question is, why is the insurance so darn expensive? My agent said they are required to insure properties at replacement cost, which is WAY more than I paid. Do other states have this requirement? It really blew me away, and seriously cut in to my expected cash flow.