Landlord Insurance by sq. ft. or by appraised value

[Carl Graff]

I am in the process of obtaining landlord insurance for 2 properties:

1. 2300 sq. ft. home with 3 car garage and in-ground pool worth ~ 560K

2. 504 sq. ft. condo in La La Jolla worth ~ 285K 

I am getting suggestions on coverage by property value but I think it should be square feet because the condo is worth about 285K and 5 miles away would be worth half that. I will call construction companies but I think they quote by square foot.

I am amazed at the lack of information available for average cost per square foot to rebuild condo just interior and house everything.

Best ballpark I can get is $75 - $125 / ft for condo and $200 - $250 /ft for house.

Also insurance agencies I have dealt with tend to jack up the personal property limits for example $20K personal property for a 1 br 1ba 504 sq. ft. condo - give me a break.

Here is what I will go with unless someone has better recommendation:

-------

Condo 504 sq ft HOA covers all external :

504 * $100 ~ $50K Property + $6K Personal (appliances mainly)

-------

House 2300 * $225 ~ $518K Property + $10K Personal (appliances mainly)

Also what if it cost less than the insured amount does the insurer get to keep the extra?

Any feedback appreciated.  

Carl