Claims & Insurance
Valued Policy Law
A valued policy law is a state rule that, in a total loss, requires the insurer to pay the policy limit for the insured structure instead of the actual cash value. Only some states have one, most apply it to a total loss of real property and in many states only to fire losses, and the details differ - so check your state's rule and the policy before you rely on it.
Common questions
What does "Valued Policy Law" mean in Xactimate estimating?
A valued policy law is a state rule that, in a total loss, requires the insurer to pay the policy limit for the insured structure instead of the actual cash value. Only some states have one, most apply it to a total loss of real property and in many states only to fire losses, and the details differ - so check your state's rule and the policy before you rely on it.
Where does "Valued Policy Law" show up in a claim?
The term matters on estimates and scopes across the insurance restoration workflow. Browse the glossary for related terms.
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