Valued Policy Law (VPL) claims in Florida have increased significantly. These claims involve alleged total losses to property caused by events such as fire, lightning, wind or even floods.

Valued Policy Law is intended to fix the measure of damages payable to the insured in case of total loss to property. Florida Statute 627.702 provides that when any building or structure sustains a total loss as a result of a covered peril, the liability for said loss shall be the amount of money for which the property was insured. This applies to building coverages, but does not apply to other structures, personal property claims, additional living expenses, or ordinance and law coverage. Florida’s Valued Policy Law is not intended to expand coverage or to deprive insurers of any defenses available to it via the policy of insurance.

When analyzing whether Valued Policy Law applies to a property insurance claim, it is important to carefully evaluate the policy language regarding covered and excluded perils. Contact our First Party Property Group for assistance with any residential and/or commercial questions, firstpartyproperty@kubickidraper.com.