Also how was the compensation only 25% of the value?
Home insurance actually works _exactly_ this way. As long as you have a mortgage in the US, you're going to be required to carry enough insurance to pay for the full cost of completely rebuilding a similar brand new home in the event the home is destroyed.
Let say you buy brand new MacBook Pro for $5000 in 2016. Someone breaks into your home and steals it. Most people when they file the insurance claim thinks the value of the MacBook Pro is $5000 (what they paid for it), but that's not true. The value is the price of a similar 2016 era MacBook Pro on second hand market places (ebay, etc). So lets say that 2016 MacBook Pro similar to yours is selling for $800 on ebay, insurance will compensate you $800.
With RCV coverage they will pay for a new MacBook Pro with similar RAM and storage and screen.
I’d guess that most people on HN go for RCV on their homeowners’ insurance. I remember once looking into how much I would save if I switch the personal property coverage of my homeowner’s policy from RCV to ACV and while I don’t remember the amount I remember my reaction was “it’s that little!?” and I kept it RCV.