In closing, the author advises that complaints concerning Mierzwa's interpretation of the valued policy
law should be directed at the legislature, not the courts.
Because most businesses do not operate evenly from day to day throughout the year, a business that selects a valued policy
form may be in danger of being underinsured or overinsured at specific times of the year.
The map below identifies valued policy
states and their requirements.
First, the assertion that the valued policy law was not written to apply to a policy where covered (wind) and noncovered (flood) perils combine to create a total loss is inconsistent with Florida law.
A valued policy is "one in which the value of the thing insured, and also the amount to be paid thereon in the event of loss, is settled by agreement between the parties and inserted in the policy.
Finding that there was no Florida case on point, the court set out "to give effect to the theories behind the valued policy law .
Florida courts have uniformly held that "the Valued policy law is founded upon the theory of 'calculated risk,' while the pro rata insurance clauses are based upon the theory of "indemnity.
1st DCA 1964), the principal object and purpose of Florida's valued policy law is to fix the measure of damages in case of total loss.
If these two facts exist, the valued policy law mandates that the carrier who chooses not to elect to repair (6) is liable to the owner for the face amount of the policy, no matter what other facts are involved as to the cost of repairs or replacement.
Originally, the valued policy statute applied to both total and partial losses caused by fire or lightning.
In light of the language of the statute and the opinions interpreting and applying that language, a total loss to insured property caused by windstorm is subject to the valued policy law for total losses but not partial losses.