Actual Cash Value Insurance

[Rick C.]

Hello BP. I am doing a review of the insurance coverage on my rentals in Tampa FL, and I wanted to get a better understanding of what would happen in the case of a full loss. Here is an example of one of the rentals I have:

1000 sq ft Single Family Rental

Frame

Built in 1925

Purchase price: $50k (in 2015)

Market Value: $75k

Replacement Cost: $130k

Insured for: $75k at Actual Cash Value (ACV)

Deductible: $2,500

If a major disaster (such as a hurricane or fire) leveled this house, what amount would I receive as a result?  Would depreciation still need to be calculated?