I'm not sure they could have afforded to bring their house back to a livable situation had it not, with all the smoke damage. Ripping up carpeting, pulling out drywall, throwing away furniture and clothing, cleaning our air ducts - with no insurance money for any of that - could have been a significant burden. Plus, the government would have required building permits for that remediation work and imposed the new codes and requirements on the remediation, just as if it were new construction. Similar to when I "remediated" the existing electrical service to my house to add a hot tub - we had an electrician add an sub-panel next to the main panel - that had to be permitted, inspected, and was required to meet all new codes that had been implemented since I first bought the house.Sounds like they would have been better off if their house didn't burn down.
The point I was making was about government adding new codes and requirements for rebuilding (new construction) and remediation (fixing old construction). Mandating changes and forcing people to pay tons of their own money to meet those new requirements on their already owned properties that were destroyed/damaged by fire (probably caused by government malfeasance in the first place).