I heard an anecdote from a rural insurance agent that the fire insurance is crazy because repairing/rebuilding a house after a fire costs much more than the market price of the house + land, or an equivalent house + land nearby - the issue is that (in some areas) the rural house prices there are way down as there's no demand and everyone's leaving, while the costs of construction are sky high.
So if they offer a policy that covers the market value of the house, that's much less than what it would cost to repair/rebuild (so insured people can't afford to get their house back after a fire), and they don't want to offer full repair/rebuild value, as that incentivizes people to just burn the house down because in that case the insurance payment would be much more than what they can sell the house for.