Does a Policyholder have to rebuild on the same land if the home burns down?
No. The Policyholder has the right to take the settlement and build elsewhere. However, it should be pointed out that the loss settlement will not include the value of the land, and the limit of insurance may not be sufficient to totally rebuild in another place. When replacement cost is computed, values of foundations, excavations, and items below the surface of the ground are not added in. It is presumed that even when a house is totally destroyed, some of the site items (sewer lines, water lines, footings, foundations…) may remain and need not be replaced 23.
