Rich – Thanks for providing a dose of sanity. Any homeowner with insurance knows (or should know) whether their insured value is cash value or replacement cost. They also should know the dollar value of the strcuture(s) covered and the cost to replace them. They also know that in San Diego, often the cost of a property is primarily the land, with the structure often being less than 50% of the property value.
There seem to be a rash of ignorant posters who do not understand this. An FB who paid 700K or so might get less than 300K to replace their property. In the best case scenario, a homeowner has a replacement cost policy AND paid for enough coverage such that the replacement cost is no more than 150% of the value of their policy coverage. (Replacement value insurance typically covers up to 150% of the policy coverage).
It is highly unlikely that in the current market a charred empty lot would command the kind of prices paid for the improved lot with a structure on it.
Even in good economic times for housing, many in Scripps Ranch had to cough up significant funds to make themselves whole again after 2003.
A house burning down is not going to help an FB in San Diego.
However, it remains to be seen what the longer term effects of the follwing factors might be: lost housing stock, increased insurance costs, added construction jobs, and psychological effects on buyers.
Finally, my deepest sympathies go to those who have been displaced, lost their homes, apartments, and memories.
