Most of us pay into our homeowner’s insurance policy and never collect. We have a high deductible plan which is fine. If the place burns to the ground we can rebuild.
Generally, homeowners insurance will cover the replacement cost of a home which isn’t quite the same as the resale value. If a home is totaled the owner has a lot to rebuild on. How much will it cost to build the same home? I don’t have a clue to be honest. Construction costs have gone way up since we purchased our home. We don’t know at this point if we have enough insurance but are going to find out.
Most people don’t realize that many homeowners’ policies do not cover vacant homes. If your home is going to be vacant call your insurance company and ask if you will need to have something added to your plan for full coverage.
Also in the winter, vacant houses need to be winterized. I have seen the damage frozen pipes can do to a home as they thaw and it isn’t pretty, especially when it isn’t covered by insurance because the house is vacant.
Renters should always get insurance. As hard as it is to imagine landlords are not always insured and even if they are tenants belongings may not be covered. In fact, people rent out uninsured property.
People who own condos should also have insurance. It is more like renters insurance and starts where the insurance from the association quits.
People do not always read their insurance policies. They are pretty boring but worth a read.