So our appraisal of the property does include a section on RCV with a base cost for the c-store and the fuel island canopy, plus a profit and indirect costs which all total the replacement cost new.
For example: $300,000 base RCV for c-store
$50,000 base RCV for fuel island canopy
$100,000 profit and indirect costs
So $450,000 total replacement cost new
The appraisal then provides a less accrued depreciation section, which contains physical deterioration costs of:
$140,000 for c-store
$15,000 for fuel island canopy
So $155,000 total accrued depreciation
Based on this information can someone guide me as to how to calculate how much insurance we need on the c-store (only)? Thanks!