A lot of assets that are "not volatile" -- are actually very fucking volatile. Try selling a house (or other real estate) after fire, flood, or earthquake, or riot -- or even an economic crash...
Not quite. The new owner will have all the renovation they were planning anyway paid by the insurance company as they buy the insurance benefits along with the house. This is not fiction, it did happen to me, as the seller. The price did not change a cent.