Is some of your fire insurance a waste?

[Gary Dezoysa]

Experienced real estate investor John Schaub says that paying for a full fire insurance policy is a waste, because you never get a full payout. He says to shop around for a policy that will allow insuring 50% of a property.

Hopefully someone who's had a fire incident can enlighten me to the truth of this claim. I would assume that a policy that covers 100% of the home would pay more than one that covers only 50% of it, but John has been in this business a lot longer than I have.