[Little Ray]

Think of it like a car. They may need to “total” the building.

Given the limited number of stories, I wonder whether the lot alone is worth close to the current value of all the condos.

So insurance pays, minus the deductible?

[alternatives?]

Let’s say the condos are worth $10 million and the land is worth $6 million. The insurance company would only pay $4 million to fix, less the deductible. If the repairs needed would cost $7 million, the insurance company would pay the condo owners $10 million, less the deductible, tear down the condos, sell the land for $6 million and have a loss of $4 million which is less than the cost of repairs of $7 million.