Nobody insures for market value, its replacement value, if a 1200 sq ft house in California with a market value of 1 million burns down, its the replacement value to rebuild the house which won't be 1 million dollars and you are not entitled to market value.......... if during the housing crisis, when that 1200 sq foot sold for 100,000 your insurance was still the cost to replace 250-3000 est.
If you add coverage to loss of use, add a lot, then you have a place to live until the rebuild....
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Originally Posted by retiredguy123
I have built houses in the past. At this stage of life, I have no interest in doing it again. Too many headaches. I disagree that you can reconstruct a destroyed house for less than market value. The Villages builds houses for a lot less than an individual can do it. And you will be building a new house among older houses which will affect the market value. Don't forget demolition and design costs. And remember that you are not referring to the building only, because, if you buy another house, you still own the old lot, which you can sell.
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