It most likely would just be a significant portion.
Once a place is hit by fire, it takes a couple of years to be as susceptible again. Or, if it’s not been a recent hit, the odds of any individual place being hit in a given year is probably sub 25%.
So the insurance company would probably charge something like 20-25% of the value. Which, yes, is hugely unaffordable for 99.9% of people. But if you’re super rich is probably still worth it, as the reason the price is that high is that there’s a pretty good chance your house burns down in the next year or two, so you would come out ahead in that scenario.
Then again, once you’re rich enough to afford that level of insurance premium, you’re probably rich enough to just float the risk yourself. So yeah, probably pretty worthless across the board, even at levels fairly significantly lower than 100% of the replacement cost.
It most likely would just be a significant portion. Once a place is hit by fire, it takes a couple of years to be as susceptible again. Or, if it’s not been a recent hit, the odds of any individual place being hit in a given year is probably sub 25%.
So the insurance company would probably charge something like 20-25% of the value. Which, yes, is hugely unaffordable for 99.9% of people. But if you’re super rich is probably still worth it, as the reason the price is that high is that there’s a pretty good chance your house burns down in the next year or two, so you would come out ahead in that scenario.
Then again, once you’re rich enough to afford that level of insurance premium, you’re probably rich enough to just float the risk yourself. So yeah, probably pretty worthless across the board, even at levels fairly significantly lower than 100% of the replacement cost.