What do you do with homes that caught on fire but didn’t burn down?

A house up the street caught fire from me, but from what I can tell most of the damage was to the interior and then some cosmetic damage on the outside. It’s clearly not inhabitable as the people that lived there haven’t been back since it caught on fire, but it got me thinking about what happens to houses like that. Is it worth it to completely gut the inside and put in a new interior, or would it be better to sell as-is to a developer that’ll just knock it down and put up a new house?