I'd be very surprised if you have full replacement coverage if all of the factors you listed were in play when you purchased the home/policy.Filing a legitimate claim won't make you uninsurable.  

Does this surprise anyone? 

It might surprise you, but investing overseas could bring in much more cash flow and appreciation than you thought possiblehttps://www.youtube.com/watch?

Also specify it's "a convenient 10 minute drive". 

This beautiful residence is perfect for those seeking comfort, convenience, and a peaceful living environment.

I would rather work with someone who is willing to offer FMV or at least close to it with the understanding to the Seller that the discount is in the convenience. 

We are currently staying in Surprise, AZ and we like the area but are open to other areas as well.

Were you surprised by your recent valuation on you Appraisal letter? 

The sellers interest is the interest and transactional convenience, when a lender is involved there are costs associated that can often be rolled back into the loan provided the loan to value (LTV) based off the appraisal is sufficient. - Higher rates.

I was a little surprised at the cost for the services which are $500/month.