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So, can anyone explain to me please, house was valued at half what it would cost to rebuild HALF.... so, if God forbid my house burned down, what would I get paid out for? The market value which is half what it costs to replace? Also, if this be the case, what happens with my mortgage? I end up stumping up the other half? Totally confused, how can something be worth half of it's cost to create? Can someone please explain, and is there any use in paying a premium for the rebuild cost, as I'd imagine the max they'd pay out is the valuation and not the rebuild cost... head is melted, help.........
Another way to put it is that the house is worth more to you burnt down than if you sold it.
My understanding is that if your house burns down and it costs 150K to rebuild it then that is what you get even though it might cost 100K to purchase the property before it was burnt down.
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