Total loss and constructive total loss concepts in Florida are often confused with automobile total loss situations and exclusions and coverages related to Ordinance or Laws. We recently were asked about building law and ordinances which required a building to be demolished per building codes. The cause of the damage was by a covered peril although like the vast majority of older buildings, there was pre-existing wear and tear to the structure.
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Following the devastating damages from Hurricanes Harvey, Maria, and Irma, homeowners and businesses examined their insurance coverages to assist their recovery. For most people that have never needed to use insurance benefits, or had only small claims, these policies may have seemed like just another large expense every year that mostly protected the bank on its lending. Actually, when a loss happens each insurance policy should be recognized as the asset it has always been, available to provide funding for large, unanticipated expenses. The case I discuss next illustrates why understanding insurance principles is so crucial to gathering all available policy benefits.
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A co-insurance clause can operate to reduce the recoverable loss once a loss is sustained. What about in a claim under Florida’s Valued Policy Law (“VPL”)? Would a co-insurance clause reduce the recovery? This question has to do with the appropriate measure of damages under Florida’s VPL. As I have written previously, the VPL is meant to address the measure of damages for claims that fall within its terms.


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Do defenses of decay, dry rot, or termites reduce the amount of value owed by an insurance carrier to its policyholder when a property has been damaged and is a total loss under Florida’s Valued Policy Law (“VPL”)?1 This question has to do with the appropriate measure of damages under Florida’s VPL. After all, the VPL is meant to address the measure of damages for claims that fall within its terms.


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Eighteen states presently have "valued policy" laws which require insurance companies to pay the amount stated in the policy in the event of a total loss.1 In our state by state "Total Loss" series, we have covered each state with a "valued policy" law except New Hampshire and North Dakota. So, this week I will focus on New Hampshire.


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Last week we started a discussion on Florida’s Valued Policy Law.1 Florida’s Valued Policy Law has many intricacies; too many to discuss in a single post. We will be looking at a few of the statute’s interesting parts in the next few weeks. Hopefully these discussions will cover areas of the law that you may deal with regularly, as well as parts of it that are a little more unusual, while providing useful insight to you in both scenarios.


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