re: Does insurance violate the basic laws of economics?

quote:

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Your house is worth one number damaged from the hurricane and unlivable and a higher number after you’ve paid to fix it

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ok follow me.

before Ida, house is worth $200k.

Ida fricks it up.
while fricked up, it’s no longer worth $200k. Nobody is paying full value for a house that needs extensive repairs. So at a minimum that $70k worth of necessary repairs gets knocked off the value. so all fricked up, it’s worth $130k at best.

so i spend the $70k to fix it, and house is once again worth $200k.
i’ve now spent $270k for a $200k house.
The house won’t sell for $270k even though that’s what i have invested in it.
Because it’s worth $200k.

so i’m out $70k either way.