When a state does not have a valued policy law, or the valued policy law applies only to certain perils, then the standard valuation or loss settlement provisions of the policy will apply. In the ISO Building and Personal Property Form CP 00 10, the property is valued at actual cash value at the time of loss unless otherwise specified. If the limit of insurance on the building itself meets the coinsurance requirements, then payment is on a replacement cost basis. (Credit: Vittaya_25/Adobe Stock) When a state does not have a valued policy law, or the valued policy law applies only to certain perils, then the standard valuation or loss settlement provisions of the policy will apply. In the ISO Building and Personal Property Form CP 00 10, the property is valued at actual cash value at the time of loss unless otherwise specified. If the limit of insurance on the building itself meets the coinsurance requirements, then payment is on a replacement cost basis. (Credit: Vittaya_25/Adobe Stock)

Valued policy laws differ among states, but they are united in purpose — protecting policyholders from claims of underinsurance after a loss.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Coverage & Policy Issues
Commercial Lines
Personal Lines