Total Loss? Florida’s Valued Policy Law

The total loss of a home due to a natural disaster like a hurricane can be a traumatic and emotional experience for policyholders. The loss of a home is not just a financial loss but also a loss of a sense of place, stability, and security. The process of rebuilding or relocating can be overwhelming, time-consuming, and emotionally exhausting. The impact on mental and emotional well-being can be significant and long-lasting.

Florida’s valued policy law (sec. 627.702, Fla. Stat. – link to statute below) is a statute that requires insurers to pay the full value of the policy limit for a total loss (or constructive total loss), regardless of the actual value of the property at the time of loss. This means that if a property is completely destroyed due to a covered event, such as a hurricane, the insurance company must pay the full policy limit amount listed in the insurance policy (subject to certain limitations set forth in the statute). The valued policy law applies to insurance policies with coverage specific to any individual building (such as a home or a business), structure, mobile home, or manufactured building. 

This law is particularly relevant in the context of hurricane insurance claims, as hurricanes can cause significant damage or destruction to properties in affected areas. For example, suppose a homeowner has a policy with a coverage limit of $500,000 for their house. If a hurricane causes severe damage to the home, resulting in a total loss (or constructive total loss), the insurance company must pay the full $500,000 coverage limit, even if the actual value of the home was less than that amount at the time of the loss. Your insurer, under these circumstances, should not be arguing that they only owe you the amount set forth in their field adjusters estimate or requiring you to provide a rebuild estimate to substantiate the total replacement value. The insurer owes the face value of the insurance policy. Period. 

Importantly, the valued policy law does not apply to personal property (or the contents of the property) and it also does not apply where the policy limit is not isolated to a single building (but, rather, applies to multiple buildings and the policy limit is “blanket coverage” for more than one building). 

At Parrish Law, we can assist potential clients with issues relating to the valued policy law by reviewing their insurance policies and ensuring that the insurance company is paying the full policy limit for any total loss claims. In addition, we can help clients understand their rights under the valued policy law and provide guidance on how to navigate the claims process to maximize their recovery. We can also assist clients in filing lawsuits against insurance companies that refuse to pay the full policy limit under the valued policy law or engage in bad faith insurance practices.

At Parrish Law, we understand the emotional toll that a natural disaster and the loss of a home can have on our clients. We provide compassionate and personalized legal representation to help our clients navigate the insurance claims process, advocate for their rights, and help them rebuild their lives. Our team works tirelessly to ensure that our clients receive the maximum compensation available under their policy and help them obtain the resources they need to rebuild and recover from their loss.

Link to Florida’s Valued Policy Law Text: http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.702.html