Insurance isn't going to pay out on value though, it's going to pay out on replacement costs. A home that's $5M because it sits on the waterfront would be $750K

Insurance isn't going to pay out on value though, it's going to pay out on replacement costs. A home that's $5M because it sits on the waterfront would be $750K 5 miles inland, but they will cost roughly the same to replace. For example, here is one house for sale on the water in Naples (https://www.trulia.com/p/fl/naples/2331-crayton-rd-naples-fl-34103--2036699995 https://www.trulia.com/p/fl/naples/2331-crayton-rd-naples-fl...). 3 beds, 2 baths, 2k sqft on a little over 0.25 acres. $3.5M Just 7 miles away is this house (https://www.trulia.com/p/fl/naples/5241-hunter-blvd-naples-fl-34116--1041892397 https://www.trulia.com/p/fl/naples/5241-hunter-blvd-naples-f...), 4 beds, 2 baths, 2.25k sqft on 0.25 acres. $625K. I sincerely doubt the cost to replace the first home is 6x the second. And then there's this one (https://www.trulia.com/p/fl/sebring/2124-gardenview-rd-sebring-fl-33870--2036133771 https://www.trulia.com/p/fl/sebring/2124-gardenview-rd-sebri...), which is about as far from the coast as you can reasonably be in that part of florida, going for a mere $240k, and I doubt it's significantly more or less to replace than either of the previous two.