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all policies are for replacement value - and the ones that are are only for replacement value of what you HAD, meaning that they're not going to pay for any fancy upgrades.

And why should they, really? If the insured item is a house, you should be paid for the worth of that house, not the newer better one you would build if someone else was paying for it. Insurance policies can be written for anything you like.... but you have to understand that the insurance company is not a charity, it's a business. Trying to make money insuring homes in hurricane country is probably just as tough as trying to ensure people who continue to rebuild in flood plains.

And why should they, really?

They shouldn't - but they should be crystal clear about what they do/don't cover. IMHO, I think casualty policies should require a full inspection/appraisal of the house being insured, to say THIS is what it would cost to replace what you have, THAT is what it would cost to rebuild it according to current codes, and THERE is the amount of insurance you should REALLY be buying.

Most people I know are willing to pay what's necessary to be fully covered in such a case, but few take the extra steps to make sure they REALLY have enough insurance, or even realize that there ARE extra steps - and it's amazing how many agents don't follow through, either. (But for some prior calamities, I wouldn't have done so, either.)