What must be arranged if Amelia suffers a total loss resulting in her house needing to be rebuilt?

If Amelia suffers a total loss that requires her house to be rebuilt, it is essential for her to arrange a new insurance contract along with a new premium. This is because a total loss often means that the existing policy will be void for the specific structure that was insured. Given that her property will be rebuilt, she needs to ensure that her new home is adequately insured from the moment it is constructed.

Therefore, obtaining a new insurance policy is crucial to protect the new property from potential future risks, such as fire or natural disasters. This new policy will reflect the current value and condition of the rebuilt property, allowing for proper coverage that aligns with any changes in market value and risks associated with the new structure.

In contrast, maintaining the existing policy (which might have covered only the previous structure) is inadequate to address the updated needs following the total loss. Similarly, the option involving cancellation of the insurance policy permanently fails to recognize the necessity of having ongoing coverage for the new property. Hence, establishing a new insurance contract is the logical step to ensure Amelia's newly rebuilt house is protected appropriately.