I think this gets overlooked....your "market value " is not the same as your "replacement cost value".
Folks should understand the difference to get a better understanding of what insurers are insuring.
RC is what it would cost you today to rebuild. I built in 2019 for $160/Sq ft. Today would cost me close to $200 to $220 to build exactly the same home I have now. If the market is flooded with inventory my market value may be lower, but that's what someone would pay to buy my home. To build is totally different.