HB 4472
Clarifying that commercial real property insurance policies may be underwritten for less than replacement cost value of the insured property
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill clarifies that commercial real property insurance policies in West Virginia can be written for amounts less than the full replacement cost of the insured property. Currently, insurance policies are generally required to cover the full replacement cost of damaged or destroyed commercial real estate. This legislation allows for greater flexibility in determining the insurance coverage amount, based on an agreement between the insurer and the insured. It allows for coverage based on actual cost, market value, or any other agreed-upon amount.
Key provisions
- Allows commercial real property insurance policies to be underwritten for amounts less than replacement cost.
- Defines ‘Replacement cost value’ as the cost to repair or replace property without deducting depreciation.
- Defines ‘Actual cost value’ as depreciated cost to repair or replace property.
- Provides for agreement between insurer and insured on the total insurance amount.
- Does not apply when multiple insurers cover the same property.
- Clarifies the scope of coverage for commercial real property insurance.
Who is affected
- Commercial property owners
- Insurance companies
- Real estate developers
- Businesses with commercial property
- West Virginia residents
Notable changes
- Expands the range of acceptable insurance coverage amounts for commercial real property.
- Removes a previous restriction on insurance amounts based solely on replacement cost.
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