Mississippi also has a
Valued Policy Law, which provides "when buildings and structures are insured against loss by fire and, situated within this state, are totally destroyed by fire, the company shall not be permitted to deny that the buildings or structures insured were worth at the time of the issuance of the policy the full value upon which the insurance is calculated, and the measure of damages shall be the amount for which buildings or structures were insured."
The Landrys sued, claiming that a 108-year-old state statute--the
valued policy law (VPL)--requires insurers to pay the face value of a homeowners' insurance policy when an insured home is completely destroyed.
The judge found against underwriters that the
valued policy law made wind insurers liable for policy limits in a constructive total loss, even when it was caused in part by uncovered perils.
In "Florida's '
Valued Policy Law': Clarifying Some Recent Misconceptions" (Dec.
Shelby McKenzie, partner in the law firm Taylor, Porter, Brooks & Phillips based in Baton Rouge, La., said Louisiana's "
valued policy law" is similar to Florida's.
4th DCA 2004 the bill provides legislative intent that the
valued policy law is not intended to create new or additional coverage, or to require an insurer to pay for a loss caused by a peril other than the covered peril.
It is my opinion that numerous issues that are raised by the author, John Garaffa, appear to be aimed at distorting Florida's
valued policy law to the disadvantage of policyholders.
"Florida's
Valued Policy Law" (April) is a tale of two articles: First, the author, Mr.
In the midst of this examination is Florida's
valued policy law. For most insureds and their attorneys, there is an expectation that insurance will be available to return the insured's property to its pre-storm condition.