That's way too much unless you basically re-build the whole thing.Second, even with a basement unit, the cap is way too low for 1.3M, especially you are putting 480K cash in reno. 

I had insurance on the property, so im covered in that aspect, because they are rebuilding my unit as part of a mass rebuild project jointly with the HOA insurance.

The rebuild insurance is $84/month at $170k.

Some examples here are additions (adding square footage), changing floorplans (making a house more functional), adding bathrooms or bedrooms (changing the buyer demographic), tearing down and rebuilding, etc.

Property is very cheap up there and you may not get your cash back if you rebuild. 

After insurance pretty much paid to rebuild the entire house, we sold for 135,000.

Basically that is coverage that an insurance company provides in the event you have a covered loss to part of your property and when you go to rebuild you have additional costs due to bringing the property up to current city or county codes. 

If you I nsure for the rebuild price ,your policy will be sky high .

You could turn your life around over night and rebuild easily if you pull your head out of your butt and stop placing so much value on status.

I know they’re rebuilding that huge park over there...