JTip
Elite Member
- Joined
- Oct 12, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Pennsylvania
Yes, but they are telling me to build what I had, a 100+ YO dilapidated barn. NOT happening
Sigh....
This is the amount you have available to replace the barn with 'like kind' materials. One cannot 'reproduce' a 100 year old barn exactly so the insurance company will build you one, with modern materials and design, to have the same utility and function as the old barn.
Your house, for example, due to the age, most likely has horse hair plaster. Now if your house burns down the insurance company will not demand you kill a dozen horses, rip out the hair and mix it in a plaster paste to apply it to your new walls......they will use modern drywall.....
You do not have to find extinct 25' chestnut header beams to recreate your barn, 'LIKE/KIND/UTILITY/FUNCTION'.
I sold P&C insurance for over a decade. I'm not good with cap rates but I do know insurance.