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This 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 bur
by dvt 5y ago
This 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.