[0] https://denver.cbslocal.com/2015/06/10/owner-of-home-destroy...

This says his homeowners will cover the cost to rebuild

My dwelling policy actually says: We insure for accidental direct physical loss to the property

Interestingly, the article describes the incident as "a quasi-war zone" which is specifically not covered: We do not insure under any coverage for any loss which would not have occurred in the absence of one or more of the following excluded events: e. War, including any undeclared war, civil war, insurrection, rebellion, revolution, warlike act by a military force or military personnel, destruction or seizure or use for a military purpose, and including any consequence of any of these. Discharge of a nuclear weapon shall be deemed a warlike act even if accidental.

This article says that homeowner's was going to pay to rebuild, he wanted the city to pay for a longer term housing in the meantime while it was rebuilt.

So, its unclear what he is suing for exactly, except maybe some temporary living expenses.

Any money he got from the government over and above the deductible he'd likely have to pay back to his insurance company, wouldn't he? You can't double dip like that.