What happens if my house burns down while commercially zoned?

[Levi Tansy]

I have a deal being offered to me where a house is on commercially zoned land. This makes the exit strategy tricky because a bank is less likely to loan to a potential buyer because if it burns down, you can't build a new house. 

So my question is if I have insurance on the house and it burns down while I own it, can I use the settlement to build something commercial?

I appreciate the help! I'm new and I couldn't find much on the web addressing this specifically.