Those handling fire losses and dealing with Florida’s Valued Policy Law may not have come across a provision in the statute dealing with the insurance carrier’s option to rebuild. It seems counter-intuitive that a statute meant to address the measure of damages in total losses would provide a provision giving insurance carriers the right to rebuild the property. But, Florida’s VPL statute1 does have such a provision:
(7) Nothing herein shall be construed as prohibiting an insurer from repairing or replacing damaged property at its own expense and without contribution on the part of the insured except, as provided in subsection (6), when an insured has elected to purchase stated value coverage. Such repair or replacement of damaged property shall be in lieu of any liability created by subsection (1); and any insurer so repairing or replacing shall have no liability pursuant to subsection (1), provided such insurer returns to the named insured a portion of the premium, for all policy terms during which the policy limits were the same as those in effect on the date on which the loss occurred, equal to that portion of the premium paid for limits of insurance on the structure in excess of the cost of replacement.