Thoughts about Property Insurance

[Amy Little]

I have 2 townhouses and a duplex. Although I have property, I'm still very much a newbie trying to figure everything out. On each property, the insurance I maintain is what the insurance company has quoted me for replacement value. However, financially, I am not in that much on each property.  For example, insurance on duplex is for $150K for rebuild value costing $1400 annually; my personal financial investment is only $23K.

How do landlords assess the type of insurance coverage for their property? (i.e., only insure for the amount of money you have in the place OR for the replacement value). What are the pros/cons?

Thank you