On March 27, 2008 the Florida Supreme Court quashed three more First DCA “Valued Policy Law” cases which had been decided pursuant to Mierzwa v. Florida Windstorm Underwriting Ass’n, 877 So. 2d 774 (Fla. 4th DCA 2004). The Mierzwa court had interpreted the VPL in such a way that a total loss required payment of the policy’s face amount, regardless of liability and causation: “[T]he VPL provides that any liability of a casualty insurer where a covered peril is involved in a total loss must be for the face amount rather than pro rata with other coverages.” Id. at 776.
Soon after, a legislative fix followed. Then, 2007, the Florida Supreme Court stepped in and expressly disapproved of Mierzwa‘s interpretation of the VPL. In Fla. Farm Bureau Cas. Ins. Co. v. Cox, 967 So. 2d 815 (Fla. 2007), the supreme court held the prior version of the VPL was intended only to set the valuation of the insured property. The court also determined that the VPL did not intend for an insurer to pay for the total loss if a covered peril caused part of the total loss.
In Citizens Property Insurance Corp. v. Dancy, Citizens Property Insurance Corp. v. Ueberschaer, and State Farm Florida Insurance Company v. Ondis, the First DCA had determined the VPL required a carrier to pay the face amount of the policy when the structure was deemed a total loss, but the damage was caused in part by a covered peril and in part by an excluded peril. The supreme court referenced its recent decision in Cox, and quashed the First Districts opinions and remanded the cases for reconsideration in light of Cox.