Valued Policy and Application of Deductible

May 9, 2016

We are hoping you can solve an internal disagreement about the deductible application on a DP 00 01 12 02 form. We have a total fire loss in Tennessee and cannot find any statutory language that specifically references application of a deductible. Since the statute is silent on the issue, it appears that the deductible should be taken from the limit per the policy language. We have found one case in Arkansas that specifically says the deductible cannot be applied to the limit, but nothing in Tennessee. Should the deductible be applied at all? To the limit? To the damages?

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