If your house burns down, it’s much easier to claim hardship and walk away. Plus you get plenty of sympathy.

On the reconstruction side, does the insurance company pay the homeowner, or do they pay the contractors directly for the rebuilding work? Can someone who has rebuilt before clarify this situation.

If the insurance company gives someone $300,000 and says here, go rebuid, then it’s too easy to walk away with the money and let the bank foreclose on the land.