Homeowner's Insurance for Buy&Hold Investors

[Geoffrey Tanudjaja]

Hi BP Community!

I am currently shopping for insurance's quote and I am confused with what they have to offer. The property (duplex) is located in Detroit, MI. The size is around 2,000sqft and was built in 1928. They just rebuilt the inside and currently working on the exterior. With that being said when I call them to quote for insurance, there are couple of things that they mentioned: replacement value vs select value. The premium for replacement value is ~$4k (with $3000 deductible), while for select value, the premium is ~$1.6k (with $3000 deductible). I don't exactly know which policy I should go with (intuitively, I would go with the cheaper option, but not sure whether this will be the best)

I'm planning to house hack with this property (this house will be my first property!) and potentially rent both units down the road. As a buy&hold investors, do you guys have any recommendation regarding best insurance policy? What kind of things that I need to make sure that my policy covers? Or maybe what kind of requirements that I need to tell the insurance provider, so that they can give me the policy that tailored to my needs?

I am completely lost and any recommendations or advice are welcome!

Cheers,