Need advise for burned property

[Riz Mat]

One of my rental property got burned but not completely burn down. I have claimed the insurance and they pay me out around $50k to repair the property.

My property manager sent the contractor to get estimate for repair, and they come up with cost around $80k to repair. Is it worth to add more money to repair? Or should i put the house to market in that state to sell, and move forward to buy other property? Appreciate for any advises.

regards,

Riz

[John Mocker]

Riz,

There are a couple likely reasons for the difference from what you are getting vs the repair cost.  If you policy is valued at "Actual Cash Value" then the company is deducting depreciation from the total.   If the Policy is based on "Replacement Cost", most companies will pay you the Actual Cash Value until the actual repairs are done.  Once they are done they will pay the additional, up to the Replacement cost.  You should check with your agent to see which is the case.