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Moderator (Jf)
Posted on Saturday, August 26, 2000 - 8:03 pm:   

Arkansas Valued Policy Law applies to fire and all natural disasters except earthquake and flood.

As Linda said, see the email response from the Arkansas Department of Insurance to this question under the June 28, 2000 post under the thread Valued Policy States.
Linda Asberry (Linda)
Posted on Saturday, August 26, 2000 - 7:42 pm:   

On June 28, there is a post re: Valued Policy States, from the Arkansas Department of Insurance with the law copied from a message sent to Jim Flynt.
Tom Joyce (Tomj)
Posted on Saturday, August 26, 2000 - 1:25 pm:   

Arkansas valued policy also applies to all natural disasters
David P Bennett (Whitey)
Posted on Saturday, August 26, 2000 - 10:54 am:   

Tom, just noticed your question. Would assume you have concluded the claim by this point. Would like your input as to how it concluded. If my memory serves me correct, the valued policy law for Ark. applies to fires. As the coverage is ACV coverage and your ACV loss is 87,432.00 would appear that the amount payable is 87432.00 Of course the acv of the building as a whole may come into play. It does not appear on the surface of your question that the Valued Policy comes into play, assuming you don't have a total loss. If you have a total loss, that is burnt to the ground, then yes the measure of the loss is the Policy Limit.

David Bennett
Ray Bishop (Raybish)
Posted on Saturday, August 26, 2000 - 8:59 am:   


I will go on the limb here. In my opinion, the insured would be entitled to receive the policy limit of $100,000.00, with no additional coverages as debris removal, etc. Of course, the deductible being absorbed in the total loss. But the question here is, what type of loss was this? If it was a total fire loss, no question about it. If the risk is totaled, then the insured would receive the policy limits no matter the calculation. I have come accross this issue several time in Mississippi, where I have had total fire losses;say, a risk with an RCV of $85,000.00, and limits on Coverage A Dwelling of $125,000.00. The loss calculated in the area of $96,000.00, but the insured received the limits of $125,000.00. Hope I have helped.
Tom Strickland (Tomotexas)
Posted on Tuesday, June 20, 2000 - 4:24 pm:   

Would someone update me as to Arkansas valued policy conditions. Question is this.
Coverages is $ 100,000.00 building--ACV,and $ 30,000.00 contents--ACV.
Estimate for contents is excess of $111,000.00 no problem paying policy limits based on my review.
Estimate for building is 100989.27. Depreciation is $ 13,557.27. Building was renovated completely in September 1996. Recommended settlement is $ 87,432.00 less deductible.
Would valued policy provisions enter into this claim and would insured be entitled to policy limits of $ 100,000.00 plus any additional coverages,i.e.,debri removal,etc.
Policy is ISO Form

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