SB 661
Clarifying commercial real property insurance policies
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- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
Senate Bill 661 clarifies that insurance policies for commercial and industrial real property can be tailored to the specific needs of the property owner. It allows insurers and property owners to agree on the total insurance amount, regardless of whether it matches the replacement cost value. This bill ensures that insurance coverage can be customized to reflect the actual value of the property as determined by the parties involved. The bill specifically addresses the potential discrepancy between stated policy amounts and the cost to rebuild or replace a property.
Key provisions
- Allows insurers and property owners to agree on any total insurance amount.
- Clarifies that insurance can be underwritten for amounts less than replacement cost value.
- Specifies that acceptable values include Replacement Cost Value, Actual Cost Value, and market value.
- Addresses the potential for disagreement between stated policy amounts and actual rebuilding costs.
- Applies to commercial and industrial real property insurance policies.
Who is affected
- Commercial property owners
- Industrial property owners
- Insurance companies
- Real estate developers
- Property managers
Notable changes
- Expands the range of acceptable insurance amounts beyond solely relying on replacement cost value.
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