After reading some of the posts about dramatic real estate run-ups, this article seemed like it might be pertinent. Of course, most of you who live in areas where real estate runs up rapidly are probably already aware of this. 
http://www.nytimes.com/2004/08/31/bu...insure.html?th
"Homeowners Come Up Short on Insurance
By JOSEPH B. TREASTER
Published: August 31, 2004
. . . In a move to cut costs from claims, insurance companies began in the late 1990's to phase out coverage that guaranteed the replacement of a destroyed home, regardless of the expense to the insurer. In place of that unlimited coverage, which had become nearly universal, insurers substituted a similar-sounding policy with a crucial difference: it pays only the amount stated on the policy plus, typically, an additional 20 percent to 25 percent.
For their part, insurers insist that it is the consumer's responsibility to acquire adequate coverage.
The old policy was called a guaranteed replacement policy. The new one, which most Americans now have, is called an extended replacement policy. . . . "
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