Dwelling (Building coverage)The limit should be based on the Replacement Cost of the building (cost to rebuild withthe same kind and quality excluding the foundation)2.

I am concerned that Apartments should actually be excluded because they often come with management and other variables that a duplex would not. 

@Jim AdamsAs others have mentioned.There are two separate rules when it comes to section 121First a personal residence and then an investment propertyorFirst an investment property and then a personal residence.You fall into the first camp so you should be eligible to exclude up to $250,000 or $500,000(if married filing joint).You will need to report some gain though based on the depreciation calculated for the period the property was a rental.

If the defect hasn't been excepted or excluded from the coverage of the policy the underwriter sets about curing the defect. 

I say for any structure plan about $125-175/sqft this exclude well, septic, foundation that is additional cost and each one of those can range between 10-30k dependent on soil type depth need to drill and the type of foundation needed to support the structure.I have an Architecture and engineering background feel free to touch base anytime you want. 

Dwelling (Building coverage)The limit should be based on the Replacement Cost of the building (cost to rebuild withthe same kind and quality excluding the foundation)2.

It is likely more beneficial to do a 121 exclusion in this case as the gain will be excluded instead of deferred.

Don’t like blindly pontificating on pricing without seeing what coverage are included or more importantly excluded.

Im specifically looking to see if anyone has any other creative funnels that exclude using commercial brokers.

Some exclude coverage on "aggressive breeds".I'll also include a let agreement as part of the lease agreement that allows the pet agree my to be revoked if the pet becomes a problem and violates the terms in the pet agreement.