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.

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