The benefits to using an RCV policy are that it would pay to fully rebuild your property in the event of a total loss.

This means that even if your insurance company rebuilds your property, there may not be anyone available to rent it.

What is total cost to rebuild?

There is a huge community of investors only buying large apartment buildings to either renovate and make luxury apartments or they are rebuilding to make more singular homes depending on the size of the land.

I'd say best investment now is still the best parcel in land that's below market relative to location, and the house that sits on it(that's below the cost of rebuilding). 

This isn't personal, it’s not based on a claim you may or may have not had, it’s simply the cost of doing business.The cost to rebuild your home is up dramatically due to the rising cost of materials and labor.

Plus the rebuild of PV Mall just adds potential appreciation in the future (but not banking on that alone). 

Dwelling (Building coverage)The limit should be based on the Replacement Cost of the building (cost to rebuild withthe same kind and quality excluding the foundation)2.

I was considering rebuilding and using the home as a luxury vacation rental with an emphasis on hosting events such as weddings.

The price tag is steep, but if you are already willing to do the rebuild spring to have the water damage affected areas removed , treated and dried out by a remediation specialist.