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Yes, or if you bought it for 40K but it burns down when valued at 800K, that loss is still effectively an 800K loss to you. Replacing it will cost the same.
by pcthrowaway 5y ago
Yes, or if you bought it for 40K but it burns down when valued at 800K, that loss is still effectively an 800K loss to you. Replacing it will cost the same.
- dvt 5y agoThis is not how things work at all. The wood and plaster and glass your house is made of doesn't go up in value, your land (aka deed) does. So if your house burns down, you did not, in fact, lose $800k.
- shiohime 5y agoThe materials already used in your house may not go up in value, but the value of the raw materials themselves certainly have gone up in value due to 30% inflation or whatever over the past year. Take a look at lumber prices. In this example I'm sure it wouldn't cost $800k to rebuild the house, but it'd certainly be more than $40k, so it would definitely be a loss.
- meheleventyone 5y agoThe cost to rebuild is often less than the cost of the house to buy these days.
- jacquesm 5y agoNormally speaking people would have their houses insured against fires.