Landlord Policy in Cleveland: Market Value vs. Replacement Value

[Matt Rutter]

Hi everyone!  

We are closing on our second rental property next week and I was looking for some advice when it comes to a Landlord Insurance Policy.  The properties are on Cleveland's west side in Ohio City South of Lorain and in Eco Village South of Gordon Sq. so they are definitely older in age.  These are buy-and-hold properties.

I'm looking for advice, and realize part of this might be personal preference, on whether I should be considering a Market Value policy vs. Replacement Value policy.  The Market Value is clearly lower than the Replacement Value, but considering the home's age it has me thinking.

I'd love some advice, op that might be helpful to guide me towards a decision.  Thanks!

[Caleb Heimsoth]

@Matt Rutter Are you using a lender or not? If you’re using a lender they may make this decision for you, so I wouldn’t put to much effort into this before you know what lender you’re using if you’re using a lender. When I bought in Cleveland my replacement value was much higher then market but my lender made me insure to 80 percent of replacement value.