Keep in mind that for many expensive homes, much of the expense is in the location, and not the home itself. It doesn't cost the market value of the house to rebuild it on the same spot. It's also not free, and in mass disasters it can be more because of shortages, but it's still less, often significantly so, than the market value.
The flip side can also be true, where the replacement cost of a home is higher than its market value. Always be sure to insure your home for at least the replacement cost.
That’s simply not true. In high col areas like this and especially on custom homes that were well built rebuilding is much more expensive than appraised market value for structures.
Part of that is easily attributable to depreciation of the structure but another large portion is the large increase in skilled labor costs in the last couple years.
Keep in mind that for many expensive homes, much of the expense is in the location, and not the home itself. It doesn't cost the market value of the house to rebuild it on the same spot. It's also not free, and in mass disasters it can be more because of shortages, but it's still less, often significantly so, than the market value.