Instead of being a devastating blow, I hope it simply becomes a lesson that propels you to bigger and better things in the future.When you have a house under major reconstruction and vacant, you should have a builders risk policy. 

There are some organizations such as LEED for new construction or major reconstruction, but this is mostly applicable for large projects, not a house here and there. 

The case specifically stated that the taxpayers used wife's calendar and receipts to reconstruct the time and entries on both spreadsheets for the first half of 2014, and that for the second half of 2014, the time entries came from a contemporaneous log wife maintained on her phone on which she entered the date, location, time and description of each task she performed.

@Tyler Stiller ok ok very interesting thank you for the info.What’s it like for renovation and reconstruction for condos?

Ideally this property would be a little bit distress so we can add value by performing some remodeling (not full reconstruction) that can be buy with a 30% downpayment.Let me know if you are able to find something like that during your analysis and we can evaluate it together.Thank you,Jaime

When reconstructing the home, does the the investor pay for the rehabbing himself or can a loan be taken out to do so and afterwards a reimbursement could be made upon the selling of the house?

The ones that have the largest impact on the rates are the reconstruction costs, not to be confused with market value or what you paid for the home.

The one is a residential property, a triplex, and my insurance broker and I calculated we were paying insurance on the basis of $190 / sq. ft for reconstruction.

You may want to also pull out statistics in project cancellation/project shutdown due among other things, State induced strict compliance to the letter, contractor's compliance and liability costs (biggest reason why significant California contractors are put out of business aside from tight competition), it's just next to impossible to earn contractor wages based on economic conditions (that being current prevailing economic depressed consumer wages cannot support re-construction costs or that wages to property modification ratios is not sustainable in long term basis), indicators, and indices (unit labor ratios, material integrity and application ratios, Local, State, and Federal (labor, occupational hazard, environmental) compliance costs, and certain and uncertain risk factors.

I am an investor and real estate developer through multiple entities and  currently hold a property in North Arlington ; first phase of reconstruction is underway.