Question about insurance

[Michael Wentzel]

Hello everyone,

We are closing on our 2nd multi-family next week. I've found an insurance broker I really like.

So he has been running numbers for me on this new property. It seems like we have a lot of flexibility in setting the replacement value for the dwelling. My broker can run it through the company's estimator template, but that always seems to come out high on the replacement cost. He can adjust the replacement value down low, lowering our premiums... but then how much is enough to rebuild? He was saying $95 to $110 per sq foot would be the low-end of the spectrum, but almost certainly enough to replace the no frills rentals we own.

Are there standard numbers out there? Does anyone have numbers for Colorado or southern Colorado specifically? Any more experienced investors out there willing to share wisdom on this topic?

Thanks.

Mike