Need advice on stucco repair

[Vu Nghiem]

I purchased a property when I moved to NC in 2017 then had to moved to California in 2019 because of the military. In the process of trying to sell the house to our tenant, we discovered extensive damage to the house because of the synthetic stucco material. 

The estimated cost is close to 50K for just the stucco repair. I reviewed the inspection report and disclosure from 2017 purchase. The inspection did mention some minor damage to the stucco and recommended a dedicated inspection. The disclosure did mention that this was synthetic stucco. At the time I didn't realize how significant such a history of damages from this type of material was.

Questions:

1) Does insurance cover such repairs? I am worried that if I put in a claim and they decline it and they won't renew my insurance. Tenant is moving out this month and insurance is up for renewal.

2) Is 50K repair cost reasonable for at 2800SQFT, 2 stories, 3/3 home in coastal North Carolina? 

3) My agent advised put the house on the market for 485K with 50K credit for repair. Or take out a HELOC to perform the needed repairs. Which is a better option?

4) I don't have the cash right now to repair it, but could do long term rental or vacation rental on the property and save money to do the repair next year. Is this a good option, risking further damage to the property with time.

Thank you for any advice.

[John Teachout]

Types of siding depends on the type of structure and what's locally acceptable. I like vinyl because it's cheap and doesn't need painting. Another common material here in Georgia is Hardie plank (cement based siding). That usually needs caulking and painting and installation is more costly. I'm not a fan of stucco in moist climates like much of the SE USA