The kind of drivers who slam into houses because of speed or drunkenness are often frequent flyers who drive without insurance because they can’t afford their high risk insurance.
And personal experience making an insurance claim following fire informs me that insurance companies don’t just give you money. There are forms upon forms that have to accompanied by photographs and bids from multiple contractors and signed copies of permits because god forbid you repair something without permission from the government. It took about 6 weeks for the first check to be cut. I can’t imagine what a nightmare it would be with current supply chain issues and labor shortages.
If you don’t have savings to cover all the little incidentals because you maybe just emptied them making the down payment and covering closing costs, you are going to be in a world of hurt.
Icing on the cake is your taxes going up due to “improvements” like a new roof and wiring.
Years ago we received reimbursement for extra expenses after our house burnt down. We did have to document the expenses and there were limits. If you are tapped out buying a house it is going to be difficult. I don’t think one will need $21,000 however.