Re:Mortgage underwriting and insurance queries
No, you owe what you owe, The insurance you have would be to put it back to it's original condition/value. If the money from the insurance company, paid to the builders made a better job and the new house is worth more, you would see the benefit when you remortage as you will have more equity and portentially get a better mortgage deal.
Festar: You can't plead poverty with 2 cars. That's like a little Kenyan chap pleading poverty with 2 packets of uncle bens rice hidden under his bed.