In my experience that's not actually the case at least in legitimate evictions for non-payment of rent or breach of another part of the lease.  

Here are some Key Takeaways for You to Turn Your Multifamily Real Estate Dreams Into Reality:➡️Define personal goals.

During this renovation period would you, as the lender, want an Actual Cash Value or Full Repair Cost policy in place?

During this renovation period would you, as the lender, want an Actual Cash Value or Replacement Cost policy in place?

Sometimes lenders will go with a solid estimate based in reality as well.Otherwise, @John Underwood has the best idea.

Looking my insurance policy it mentions that I can opt for settlement under Actual Cash Value vs Replacement Cost. 

There is no one with experience in actual real estate high up in the company, which is the problem with most tech companies masquerading as real estate companies (including brokerages).Let me know if you want to know even more. :)

Our lender has informed us that we need 12 months of rental history to use the actual rent for financing purposes, or we must rely on the appraiser's fair market short term rental value.

Depends on rhetoric vs reality.

Most are being encouraged to buy Class B-minus rentals and below, but no one corrects them about their mistake of using Class A assumptions on these rentals:When a newbie gets smacked with reality via their losses, they then can only suck it up until time improves their mistake or dump at a loss.So, my question is, why can't we all do better and grow our industry with integrity?