Susan,
The Building coverage generally comes in two types:
1. Replacement Cost (RC) - cost to rebuild from the foundation on up. It is independent of the purchase price. I've seen rental homes sell for $75,000 but have a cost to rebuild of $300,000 or more. The Replacement Cost varies based on the location. Most companies have estimating programs to calculate what they require for the Replacement Cost.
2. Actual Cash Value (ACV) - is Replacement Cost less the Depreciation. This coverage is more common on properties that can't be insured in the regular market (ie. bad condtion, vacant, etc.). The disadvantage of the this coverage is that in a full loss or a partial loss, the company is going to deduct for deprecation. The advantage is, because you are insuring lower limits, the cost is often cheaper.
Most policies have a built in Limit for Loss or Rents (may also be listed as Business Income). Make sure that you have that coverage and if so, is the limit adequate.
For Liability, purchase the max you can get. Most Dwelling Fire Policies max out at $500,000. Take that option and then get an Umbrella policy. That policy will pickup if the Liability coverage of the underlying policy is exhausted by a covered claim. Generally it is sold in increments of $1,000,000. If the agent you have can not get it for all your properties there are stand alone markets for the umbrella coverage.
The rates you quote would be very competitive in many areas. The thing to check is, what is being covered (there are different levels of coverage) and what optional coverage is included. If the policy is not "Special Form" for the Building, you should ask for quotes at that level.
Some optional coverage that may be valuable for you (depending on the propery):
- backup of sewers & drains
- Ordinance & Law (if building codes require rebuilding differently)
- Personal Injury (Liability for Libel, Slander, ...)
Non Insurance Risk Management ideas that you can look into are:
- review your contracts
- require Tenants to have a Renters policy
- look at advantages of LLC for each property
- Pet policy (many companies will not write policies if certain breeds of dogs are at the property)
