requiring 100% replacement cost

[Roger Devore]

I am in the process of cash-out refinance of a property and the lending company is requiring 100% replacement cost. Is that normal for an income property? I had an insurance agent recommend 100% of the value and maybe a little more for another income property. Two thoughts, was that a terrible recommendation and is this something that would be required from most lenders? One other thought, how does one get their insurance at a more reasonable rate (besides shopping around)? I am calling a broker.

Thanks in advance,