Instead of rebuilding the house, we are planning to sell the land once the house is gone.  

This insurance from a specialist provider should cover all eventualities and even the complete rebuild of the property.

I'm sure you will get more than that down, also your coverage will pay you the rents you lose during the rebuild or repair phase if you have wait time. 

I am a big fan of the Fluidmaster complete toilet rebuild kit (about 20-30 bucks) if the toilet is otherwise sound and not cosmetically flawed.The HD page: http://www.homedepot.com/p/Complete-Toilet-Repair-...This kit replaces all the seals, fill valve, flush valve, flapper, handle, bolts, etc. 

I have the funds to re-build if I had a fire without insurance.

Is there coverage for Ordinance & Law (provides for additional rebuilding costs due to code changes)Beware of Actual Cash Value based policies. 

If you want to sell the property getting comps is tough and getting financing is even tougher.Also, as you said, if the property were damaged severely you would not be allowed to rebuild other than SFH.

In higher end markets like La Jolla for example if you pick up a small house rather than do the usual flooring paint kitchen etc. add a master bedroom or in some cases consider tearing down and rebuilding.

In the areas that I invested, there were 3 Major Project during the last 15 years. 1) Brooklyn Barclay's Center, 2) The Rebuilding of the World Trade Centers and 3) the Redeveloopment of the Brooklyn Navy Yard.

You can't not fix it and when the house explodes expect the insurance company to rebuild it.