{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2119.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2119.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2119.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2119.html"}],"law_id":62298,"edition_id":1,"section_id":62298,"structure_id":13409,"section_number":"38.2-2119","catch_line":"Approval of forms or provisions for certain risks","history":"Code 1950, \u00a7 38-190; 1950, p. 995; 1952, c. 317, \u00a7 38.1-374; 1986, c. 562; 1992, c. 762; 1996, c. 373; 2016, c. 558.","full_text":"A\n\nThe Commission may approve and authorize the use of appropriate forms or provisions for supplemental contracts or extended coverage endorsements where the insured may be indemnified for (i) the difference between the actual cash value of the property at the time of loss and the cost of repair or replacement of the property on the same site with new materials of like kind and quality, within a reasonable time after the loss, and without deduction for depreciation, (ii) additional cost or loss by reason of any ordinance or law in force at the time of loss which necessitates the demolition of any portion of the insured property, (iii) any increased cost of repair or replacement by reason of any ordinance or law regulating construction or repair of the insured building, and (iv) loss from interruption of business, untenantability, or termination of leasehold interest because of damage to or destruction of the property described in the policy. These forms or provisions shall apply to coverage provided to an insured having any interest in an insured building or structure which is a part of the building described in the policy, including service equipment for the building.B\n\nWhere any policy of insurance issued or delivered in this Commonwealth pursuant to this chapter provides for the payment of the full replacement cost of property insured thereunder, the policy shall permit the insured to assert a claim for the actual cash value of the property without prejudice to his right to thereafter assert a claim for the difference between the actual cash value and the full replacement cost unless a claim for full replacement cost has been previously resolved. Any claim for such difference must be made within six months of (i) the last date on which the insured received a payment for actual cash value or (ii) date of entry of a final order of a court of competent jurisdiction declaratory of the right of the insured to full replacement cost, whichever shall last occur.C\n\nNotwithstanding the provisions of § 38.2-2104, insurers may offer, as an option, coverage limited to the amount necessary to repair or replace damaged property with functionally equivalent property at a lower cost than would be required to repair or replace the damaged property with material of like kind and quality. Such policies may also permit, at the option of the insured, settlement based on the market value of the damaged property at the time of loss. No new policy of insurance covering property insured on a functional replacement cost basis shall be issued or delivered in the Commonwealth unless the following statement, printed in boldface type, is enclosed with the policy:\n\t\t\tImportant Notice\n\t\t\tThe coverage under this policy applies on a functional replacement cost basis which means that, under certain conditions, claims may be settled for less than the actual cash value of the property insured.","order_by":null,"text":{"0":{"id":227200,"text":"The Commission may approve and authorize the use of appropriate forms or provisions for supplemental contracts or extended coverage endorsements where the insured may be indemnified for (i) the difference between the actual cash value of the property at the time of loss and the cost of repair or replacement of the property on the same site with new materials of like kind and quality, within a reasonable time after the loss, and without deduction for depreciation, (ii) additional cost or loss by reason of any ordinance or law in force at the time of loss which necessitates the demolition of any portion of the insured property, (iii) any increased cost of repair or replacement by reason of any ordinance or law regulating construction or repair of the insured building, and (iv) loss from interruption of business, untenantability, or termination of leasehold interest because of damage to or destruction of the property described in the policy. These forms or provisions shall apply to coverage provided to an insured having any interest in an insured building or structure which is a part of the building described in the policy, including service equipment for the building.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":227201,"text":"Where any policy of insurance issued or delivered in this Commonwealth pursuant to this chapter provides for the payment of the full replacement cost of property insured thereunder, the policy shall permit the insured to assert a claim for the actual cash value of the property without prejudice to his right to thereafter assert a claim for the difference between the actual cash value and the full replacement cost unless a claim for full replacement cost has been previously resolved. Any claim for such difference must be made within six months of (i) the last date on which the insured received a payment for actual cash value or (ii) date of entry of a final order of a court of competent jurisdiction declaratory of the right of the insured to full replacement cost, whichever shall last occur.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":227202,"text":"Notwithstanding the provisions of § 38.2-2104, insurers may offer, as an option, coverage limited to the amount necessary to repair or replace damaged property with functionally equivalent property at a lower cost than would be required to repair or replace the damaged property with material of like kind and quality. Such policies may also permit, at the option of the insured, settlement based on the market value of the damaged property at the time of loss. No new policy of insurance covering property insured on a functional replacement cost basis shall be issued or delivered in the Commonwealth unless the following statement, printed in boldface type, is enclosed with the policy:\n\t\t\tImportant Notice\n\t\t\tThe coverage under this policy applies on a functional replacement cost basis which means that, under certain conditions, claims may be settled for less than the actual cash value of the property insured.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":13409,"edition_id":1,"name":"Fire Insurance Policies","identifier":"21","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:50","date_modified":"2026-06-26 03:44:50","permalink":{"id":213407,"object_type":"structure","relational_id":13409,"identifier":"21","token":"38.2\/21","url":"\/38.2\/21\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":62063,"structure_id":13409,"section_number":"38.2-2100","catch_line":"Application of chapter","url":"\/38.2-2100\/","token":"38.2\/21\/38.2-2100","metadata":false},{"id":77806,"structure_id":13409,"section_number":"38.2-2101","catch_line":"Policies shall conform to provisions of this chapter","url":"\/38.2-2101\/","token":"38.2\/21\/38.2-2101","metadata":false},{"id":71827,"structure_id":13409,"section_number":"38.2-2102","catch_line":"Excluding loss or damage caused by nuclear reaction, nuclear radiation, or radioactive contamination","url":"\/38.2-2102\/","token":"38.2\/21\/38.2-2102","metadata":false},{"id":75374,"structure_id":13409,"section_number":"38.2-2103","catch_line":"Information to be printed on policy","url":"\/38.2-2103\/","token":"38.2\/21\/38.2-2103","metadata":false},{"id":78292,"structure_id":13409,"section_number":"38.2-2104","catch_line":"Standard insuring agreement for fire insurance policies","url":"\/38.2-2104\/","token":"38.2\/21\/38.2-2104","metadata":false},{"id":83792,"structure_id":13409,"section_number":"38.2-2105","catch_line":"Standard provisions, conditions, stipulations and agreements for such policies","url":"\/38.2-2105\/","token":"38.2\/21\/38.2-2105","metadata":false},{"id":75986,"structure_id":13409,"section_number":"38.2-2106","catch_line":"Standard form for execution of policies","url":"\/38.2-2106\/","token":"38.2\/21\/38.2-2106","metadata":false},{"id":79024,"structure_id":13409,"section_number":"38.2-2107","catch_line":"Commission may establish guidelines for filing readable fire insurance policy forms","url":"\/38.2-2107\/","token":"38.2\/21\/38.2-2107","metadata":false},{"id":54378,"structure_id":13409,"section_number":"38.2-2108","catch_line":"Standards for content of fire insurance policies","url":"\/38.2-2108\/","token":"38.2\/21\/38.2-2108","metadata":false},{"id":72503,"structure_id":13409,"section_number":"38.2-2108.1","catch_line":"Commercial fire insurance policies; changes to amount of coverage","url":"\/38.2-2108.1\/","token":"38.2\/21\/38.2-2108.1","metadata":false},{"id":72078,"structure_id":13409,"section_number":"38.2-2109","catch_line":"Execution of policies","url":"\/38.2-2109\/","token":"38.2\/21\/38.2-2109","metadata":false},{"id":73410,"structure_id":13409,"section_number":"38.2-2110","catch_line":"Other matter permitted in the policy","url":"\/38.2-2110\/","token":"38.2\/21\/38.2-2110","metadata":false},{"id":61333,"structure_id":13409,"section_number":"38.2-2111","catch_line":"Special regulations to be added to policy","url":"\/38.2-2111\/","token":"38.2\/21\/38.2-2111","metadata":false},{"id":75728,"structure_id":13409,"section_number":"38.2-2112","catch_line":"Temporary insurance contracts; duration; what deemed to include","url":"\/38.2-2112\/","token":"38.2\/21\/38.2-2112","metadata":false},{"id":62048,"structure_id":13409,"section_number":"38.2-2113","catch_line":"Mailing or electronic delivery of notice of cancellation or refusal to renew","url":"\/38.2-2113\/","token":"38.2\/21\/38.2-2113","metadata":false},{"id":83824,"structure_id":13409,"section_number":"38.2-2114","catch_line":"Grounds and procedure for termination of policy; contents of notice; review by Commissioner; exceptions; immunity from liability","url":"\/38.2-2114\/","token":"38.2\/21\/38.2-2114","metadata":false},{"id":64753,"structure_id":13409,"section_number":"38.2-2114.1","catch_line":"Powers of Commission; replacement policies","url":"\/38.2-2114.1\/","token":"38.2\/21\/38.2-2114.1","metadata":false},{"id":83507,"structure_id":13409,"section_number":"38.2-2115","catch_line":"Discrimination in issuance of fire insurance","url":"\/38.2-2115\/","token":"38.2\/21\/38.2-2115","metadata":false},{"id":54915,"structure_id":13409,"section_number":"38.2-2116","catch_line":"Policies issued by two or more insurers","url":"\/38.2-2116\/","token":"38.2\/21\/38.2-2116","metadata":false},{"id":66578,"structure_id":13409,"section_number":"38.2-2117","catch_line":"Approval of forms or provisions for additional coverage","url":"\/38.2-2117\/","token":"38.2\/21\/38.2-2117","metadata":false},{"id":60472,"structure_id":13409,"section_number":"38.2-2118","catch_line":"Required statement on insurance policies for owner-occupied dwellings","url":"\/38.2-2118\/","token":"38.2\/21\/38.2-2118","metadata":false},{"id":62298,"structure_id":13409,"section_number":"38.2-2119","catch_line":"Approval of forms or provisions for certain risks","url":"\/38.2-2119\/","token":"38.2\/21\/38.2-2119","metadata":false},{"id":82981,"structure_id":13409,"section_number":"38.2-2120","catch_line":"Optional coverage to be offered with homeowner's policy","url":"\/38.2-2120\/","token":"38.2\/21\/38.2-2120","metadata":false},{"id":84269,"structure_id":13409,"section_number":"38.2-2121","catch_line":"When courts may appoint umpires","url":"\/38.2-2121\/","token":"38.2\/21\/38.2-2121","metadata":false},{"id":61467,"structure_id":13409,"section_number":"38.2-2122","catch_line":"Appraisers and umpires; oath to be taken","url":"\/38.2-2122\/","token":"38.2\/21\/38.2-2122","metadata":false},{"id":68968,"structure_id":13409,"section_number":"38.2-2123","catch_line":"Chapter not applicable to certain mutual insurers","url":"\/38.2-2123\/","token":"38.2\/21\/38.2-2123","metadata":false},{"id":73109,"structure_id":13409,"section_number":"38.2-2124","catch_line":"Optional coverage to be offered with fire insurance policy","url":"\/38.2-2124\/","token":"38.2\/21\/38.2-2124","metadata":false},{"id":74256,"structure_id":13409,"section_number":"38.2-2125","catch_line":"Notice regarding flood exclusion","url":"\/38.2-2125\/","token":"38.2\/21\/38.2-2125","metadata":false},{"id":73902,"structure_id":13409,"section_number":"38.2-2126","catch_line":"Insurance credit score disclosure; use of credit information","url":"\/38.2-2126\/","token":"38.2\/21\/38.2-2126","metadata":false},{"id":74645,"structure_id":13409,"section_number":"38.2-2127","catch_line":"Notice of change in deductible","url":"\/38.2-2127\/","token":"38.2\/21\/38.2-2127","metadata":false},{"id":72319,"structure_id":13409,"section_number":"38.2-2128","catch_line":"Certain exclusions permitted","url":"\/38.2-2128\/","token":"38.2\/21\/38.2-2128","metadata":false},{"id":85505,"structure_id":13409,"section_number":"38.2-2129","catch_line":"Notice regarding earthquake exclusion","url":"\/38.2-2129\/","token":"38.2\/21\/38.2-2129","metadata":false},{"id":80309,"structure_id":13409,"section_number":"38.2-2130","catch_line":"Coverage for volunteer fire department costs","url":"\/38.2-2130\/","token":"38.2\/21\/38.2-2130","metadata":false},{"id":61541,"structure_id":13409,"section_number":"38.2-2131","catch_line":"Assignment of claims prohibited","url":"\/38.2-2131\/","token":"38.2\/21\/38.2-2131","metadata":false}],"previous_section":{"id":60472,"structure_id":13409,"section_number":"38.2-2118","catch_line":"Required statement on insurance policies for owner-occupied dwellings","url":"\/38.2-2118\/","token":"38.2\/21\/38.2-2118","metadata":false},"next_section":{"id":82981,"structure_id":13409,"section_number":"38.2-2120","catch_line":"Optional coverage to be offered with homeowner's policy","url":"\/38.2-2120\/","token":"38.2\/21\/38.2-2120","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2119\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1952, chapter 317; in 1986, chapter 562; in 1992, chapter 762; in 1996, chapter 373<\/a>; in 2016, chapter 558<\/a>.<\/p>","references":false,"refers_to":[{"id":78292,"section_number":"38.2-2104","catch_line":"Standard insuring agreement for fire insurance policies","order_by":null,"url":"\/38.2-2104\/"}],"permalink":{"id":213493,"object_type":"law","relational_id":62298,"identifier":"38.2-2119","token":"38.2\/21\/38.2-2119","url":"\/38.2-2119\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2119\/","token":"38.2\/21\/38.2-2119","dublin_core":{"Title":"Approval of forms or provisions for certain risks","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2119","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Commission<\/span> may approve and authorize the use of appropriate forms or provisions for supplemental contracts<\/span> or extended coverage endorsements where the insured may be indemnified for (i) the difference between the actual cash value of the property at the time of loss and the cost of repair or replacement of the property on the same site with new materials<\/span> of like kind and quality, within a reasonable time after the loss, and without deduction for depreciation, (ii) additional cost or loss by reason of any ordinance<\/span> or law<\/span> in force at the time of loss which necessitates the demolition of any portion of the insured property, (iii) any increased cost of repair or replacement by reason of any ordinance<\/span> or law<\/span> regulating construction or repair of the insured building, and (iv) loss from interruption of business, untenantability, or termination of leasehold interest because of damage to or destruction of the property described in the policy. These forms or provisions shall apply to coverage provided to an insured having any interest in an insured building or structure which is a part of the building described in the policy, including service equipment for the building. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Where any policy of insurance<\/span> issued or delivered in this Commonwealth pursuant to this chapter provides for the payment of the full replacement cost of property insured thereunder, the policy shall permit the insured to assert a claim for the actual cash value of the property without prejudice to his right to thereafter assert a claim for the difference between the actual cash value and the full replacement cost unless a claim for full replacement cost has been previously resolved. Any claim for such difference must be made within six months of (i) the last date on which the insured received a payment for actual cash value or (ii) date of entry of a final order<\/span> of a court<\/span> of competent jurisdiction<\/span> declaratory of the right of the insured to full replacement cost, whichever shall last occur. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding the provisions of § 38.2-2104<\/a>, insurers<\/span> may offer, as an option, coverage limited to the amount necessary to repair or replace damaged property with functionally equivalent property at a lower cost than would be required to repair or replace the damaged property with material<\/span> of like kind and quality. Such policies may also permit, at the option of the insured, settlement<\/span> based on the market value of the damaged property at the time of loss. No new policy of insurance<\/span> covering property insured on a functional replacement cost basis shall be issued or delivered in the Commonwealth unless the following statement, printed in boldface type, is enclosed with the policy:\n\t\t\tImportant Notice\n\t\t\tThe coverage under this policy applies on a functional replacement cost basis which means that, under certain conditions, claims may be settled for less than the actual cash value of the property insured. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAPPROVAL OF FORMS OR PROVISIONS FOR CERTAIN RISKS (\u00a7 38.2-2119)\n\nA. The Commission may approve and authorize the use of appropriate forms or\nprovisions for supplemental contracts or extended coverage endorsements where\nthe insured may be indemnified for (i) the difference between the actual cash\nvalue of the property at the time of loss and the cost of repair or replacement\nof the property on the same site with new materials of like kind and quality,\nwithin a reasonable time after the loss, and without deduction for depreciation,\n(ii) additional cost or loss by reason of any ordinance or law in force at the\ntime of loss which necessitates the demolition of any portion of the insured\nproperty, (iii) any increased cost of repair or replacement by reason of any\nordinance or law regulating construction or repair of the insured building, and\n(iv) loss from interruption of business, untenantability, or termination of\nleasehold interest because of damage to or destruction of the property described\nin the policy. These forms or provisions shall apply to coverage provided to an\ninsured having any interest in an insured building or structure which is a part\nof the building described in the policy, including service equipment for the\nbuilding.\n\nB. Where any policy of insurance issued or delivered in this Commonwealth\npursuant to this chapter provides for the payment of the full replacement cost\nof property insured thereunder, the policy shall permit the insured to assert a\nclaim for the actual cash value of the property without prejudice to his right\nto thereafter assert a claim for the difference between the actual cash value\nand the full replacement cost unless a claim for full replacement cost has been\npreviously resolved. Any claim for such difference must be made within six\nmonths of (i) the last date on which the insured received a payment for actual\ncash value or (ii) date of entry of a final order of a court of competent\njurisdiction declaratory of the right of the insured to full replacement cost,\nwhichever shall last occur.\n\nC. Notwithstanding the provisions of § 38.2-2104, insurers may offer, as an\noption, coverage limited to the amount necessary to repair or replace damaged\nproperty with functionally equivalent property at a lower cost than would be\nrequired to repair or replace the damaged property with material of like kind\nand quality. Such policies may also permit, at the option of the insured,\nsettlement based on the market value of the damaged property at the time of\nloss. No new policy of insurance covering property insured on a functional\nreplacement cost basis shall be issued or delivered in the Commonwealth unless\nthe following statement, printed in boldface type, is enclosed with the policy:\n\t\t\tImportant Notice\n\t\t\tThe coverage under this policy applies on a functional replacement cost basis\nwhich means that, under certain conditions, claims may be settled for less than\nthe actual cash value of the property insured.\n\nHISTORY: Code 1950, \u00a7 38-190; 1950, p. 995; 1952, c. 317, \u00a7 38.1-374; 1986, c.\n562; 1992, c. 762; 1996, c. 373; 2016, c. 558.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}