Should I insure my rental for its rebuild cost or market value?

[Rolando Garcia]

Hi all, Should I insure my rental for its rebuild cost or market value? This is if the property is completely destroyed by tornado or fire. Any recommendations? Currently I am buying a SFR for 81K, appraised at 90K

[Ken Maddis]

In most standard policies the insurance company will provide an additional 10% of the dwelling amount for "other structures". So if you insure a home for $100k, there will be an additional $10k listed for other structures. You can talk to the agent about increasing that coverage so you have enough to cover the garage. As for how much is recommended, you might want to do a google for garage prices in that area to at least get a rough idea how much you should place on the garage.