Rental Property Insurance Replacement Cost in South Chicago

[Tereza Dyerova]

Hello Guys,

I am about to close my house in Chicago, it is a single family divided in 2 units. The price is 92K. The lender wants me to insure the house for Replacement cost which is 361K... The insurance policy raises from 1200 a year to 1800... How normal is it to insure Replacement cost when the house is 100 years old and in the area which is not so desirable? We originally planned to insure the house for 135K. I am not sure if I want to pay 70 USD per unit per month when the main purpose of this house is to have monthly cashflow.

Thank you in advance for your help.

Tereza