Replacement value vs depreciated value
We have several rental properties. When we get insurance, they tell us that we are eligible only for depreciated value insurance because the houses are "older".
They tell us that we can get replacement value insurance if we improve the propertites. They mention replacing the roof, improving the electric, plumbing and HVAC.
Can anyone tell me why this is? And how long do these improvements last? Do I have to put a new roof on every 3 years to keep being eligible for replacement value.
The cost of the replacement is only about $150 more than the depreciated so we'd like to get it if we can.
Thanks,
Glenn