Tennessee is a valued policy state, which means that in most instances an insurance company must pay policy limits in the event of a “total loss.” Back in 2009, Parks and I offered some differing viewpoints about what a total loss is or should be (see here and here). One of the issues we
total loss
Should a Deductible Be Subtracted in the Case of a Total Loss?
By Brandon McWherter on
Posted in Valued Policy Law
Consider this scenario – – Jane Doe insures her home for $100,000, with a $1,000 deductible. Unfortunately, Jane’s house burns to the ground and is undeniably a "total loss" within the meaning of Tennessee’s valued policy statute (click here for a prior post on when a loss should be considered a "total loss"). After months…
“Total Loss” Doesn’t Necessarily Mean “Burned to the Ground”
By Brandon McWherter on
Posted in Valued Policy Law
Tennessee’s valued policy law(T.C.A. 56-7-803) provides that an insurer is liable to the policyholder for the full policy limits if a total loss occurs. As a result, the big "fight" is often over the issue of whether a loss is "total" or "partial" in nature. Back in May, Parks Chastain commented here that the identity…
The Meaning of “Total Loss” Under Tennessee’s Valued Policy Law
By Parks Chastain on
Posted in Valued Policy Law
Often, litigants attempt to use the Valued Policy Law to establish that losses are total for purposes of maximizing policy recovery. In many instances, unless the home or structure is totally destroyed and “on the ground,” so to speak, expert proof can be adduced to establish that much of the building could be re-used, and…