This is one of the negative consequences of inflation that few people talk about. Insurance companies are starting to remove the replacement cost value from policies. I suspect it's because actuaries are catching on to the fact that CPI does not reflect the mathematical reality of rising prices.
⚡🇺🇸 WATCH - An American woman loses her home in a fire.
She asks insurance to rebuild the SAME home—no upgrades, no expansion.
Insurance says NO.
Her policy only covers what the house USED to cost.
That’s not insurance. It’s a rigged system designed to NOT PAY when families need it most. https://blossom.primal.net/4e38f38e0be829204e046420a8962450eac18de8734c6ccc62fca6410648f8e5.mp4
Discussion
She had just bought the place it seems... So I think there's some missing information here.
No insurance is going to say "we'll insure it for the price it was when it was first built in 1888".