If I have a home owners policy in my name and my house burns how does the insurance pay me for my loss or to rebuild? Im in RI and Im confused why we pay so much? any insight would be great.

Well, they're going to have some basic information availble - from the property tax records and your application - about how big the house was.

If the house burns to the ground, and you're rebuilding, they pay up to the policy limit (and sometimes more, depending on your endorsements). Keep in mind, in your area, houses usually cost about $200 per square foot to rebuild.

If you DON'T rebuild, they only have to pay you Actual Cash Value, which takes into account DEPRECIATION. Also in your neck of the woods, it's pretty common to see houses 75 years old, or even older, so that's A LOT of depreciation.

They'll recalculate the cost to rebuild based on public data and information you've already provided. If it's a PARTIAL loss, and your house is UNDERINSURED, they don't have to pay the whole cost of repair, they only pay the portion you insured (ie, your house is $200,000 to rebuild, you insured for $100,000, you have a 100% coinsurance clause - they pay you HALF of the $50,000 kitchen fire, LESS your deductible.)

You need to have a sit down with your agent to go over your cost to rebuild, policy limits, etc.