I feel like something’s missing. The way I read this, if he rebuilds, insurance will cover up to $455k. If he builds a cheaper house, the whole thing might be paid for. It doesn’t seem like he’d be worse off rebuilding. He could even take the $350k and sell the land to buy a new house. Maybe get a lawyer to help figure out the best move.
ACV is paid out first. Once the repairs are done, you can claim the depreciation within 180 days unless you get an extension.
Not a lawyer, but I was an adjuster.
When I lost my house to a fire, I settled for the insured amount (in your case, that’s $350k). I sold the land as-is and bought a new home for cash.
You didn’t mention personal property, but that’s important too. For me, personal property was handled separately. That process takes time and is a hassle.
If there’s a mortgage, things change. The lender would need to be paid from the insurance money, leaving you with whatever’s left.
I could’ve probably been better off rebuilding, but I was in a new home much faster and don’t regret it.