PW sorry for being dense and not reading your question correctly. Actually most of my clients are more adept buyers. They are working with me mainly because of the rebate or from personal referrals so they do not require any sort of advice in that area. The question is a bit trickier because for me to say use a replacement cost of x$ based on a quite from a contractor would be a liability for me. The problem is that this sort of analysis is much to volatile and will change based on demand and who knows if joe contractor I got that quote from will be around. I understand your point and it makes sense but my advice would be to use a replacement cost based on the current comps MINUS the assessment of the land that can be gained from your property tax statement. Is that accurate? mmmm I would say it is debateable. Can it lead to overinsured valuations? YES. Is it better to be overinsured rather then underinsured? YES.
I like your point and for more sophisticated homeowners like yourself, it is more then likely the way to go. Additionally homeowners neglect that they should absolutely reassess the amount of coverage they have on the dwelling each year and adjust that value each year based on the direction of the market.
Do I have time to do that for my rentals? Heck no…
