Definition of "Valued policy law"

Jillian Zhorne real estate agent

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Jillian Zhorneelite badge icon

Fathom Realty

Legislation in a number of states requiring insurers to pay the face amount of a fire insurance policy in case of total loss to a dwelling (or sometimes another specified type of building), rather than the actual cash value of the loss. Such laws in effect override the principle of indemnity that normally governs property and liability insurance contracts.

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