[quote=flu]
NPR says that the homeowner is most likely S.O.L because most homeowner insurance wouldn’t ensure for something like this.[/quote]
If I were the homeowner, and my insurance didn’t want to pay, and the government wanted to make me $200,000 poorer by burning down my house without compensation, I’d be in the court trying to get an injunction against the burning. Fifth amendment, “nor shall private property be taken for public use, without just compensation”.
Since we didn’t hear about the homeowner trying to stop the burning, some kind of deal must have been worked out. Maybe the government paid half and the insurance company paid another half.