In Georgia, the valued policy law mandates that if a total loss occurs to a one or two-family dwelling after the insurance policy has been in effect for at least 30 days, the insurance company is required to pay the full amount of insurance on the dwelling. This law serves to protect policyholders by ensuring they receive the full value of their coverage in the event of a total loss.
The rationale behind this requirement is to provide assurance to property owners that their investment is sufficiently insured. The law reinforces the commitment of the insurer to honor the terms of the policy, effectively eliminating the potential for disputes regarding the payout amount in the case of total loss.
This provision does not pertain to partial damage coverage, repairs by the insurance company, or the provision of temporary housing, as it specifically addresses circumstances of total loss and the obligation of the insurer to pay the agreed-upon amount for the dwelling itself.