I have a client who flips properties. He just bought 2 properties in DC. He paid about 750k for each property and expects to put another $300k in renovations. Both properties are built in the very early 1900's. The problem is when I do a builders risk quote they will only allow ACV because of the properties' ages. The replacement cost on them they are around $300k, DC is very over priced but a hot market. I have no idea what value to use for the ACV. What ever it is going to be its a lot less then the $1MM he's putting into the properties. This concerns me.
Source of insurance-forums.net
Comments
Post a Comment