Question about Homeowner's Insurance

[Rob Bianco]

Quick background: I own all my units in cash and plan to refinance once COVID-19 blows over

I currently have a policy on each property the pays out on an Actual Cash Value basis. Coverage limit is based off of the purchase price. My average premium is roughly $1500 per property with a $1000 deductible.

However, a buddy of mine recently had an electrical fire and his whole investment burned to the ground, so now I'm thinking I should have better coverage, but it's rather expensive where claims are paid on a replacement cost basis which would run about $2650

As far as I understand it, my policy would cover a lot of the cost of replacing things like a roof or damage from natural disaster or fire etc... but not 100% whereas the replacement cost policy would simply cover all costs at the expense of devouring my cashflow.

I'm just wondering what most people have and what someone would recommend?