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HB358.html
LC 25 1837

House Bill 358
By: Representative Scott of the 165th




A BILL TO BE ENTITLED
AN ACT

To amend Chapter 32 of Title 33 of the Official Code of Georgia Annotated, relating to property insurance, so as to change certain provisions relating to amount of insurance in certain fire policies deemed conclusive as to value of property covered; to provide for applicability; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.
Chapter 32 of Title 33 of the Official Code of Georgia Annotated, relating to property insurance, is amended by striking Code Section 33_32_5, relating to amount of insurance in certain fire policies deemed conclusive as to value of property covered, and inserting in lieu thereof the following:
"33_32_5.
(a) Whenever any policy of insurance is issued to a natural person or persons insuring a specifically described one or two family residential building or structure located in this state, including without limitation a manufactured home or mobile home as defined in Code Section 8_2_131, against loss by fire and the building or structure is wholly destroyed by fire without fraudulent or criminal fault on the part of the insured or one acting in his or her behalf, the amount of insurance set forth in the policy relative to the building or structure shall be taken conclusively to be the value of the property, except to the extent of any depreciation in value occurring between the date of the policy or its renewal and the loss, provided that, if loss occurs within 30 days of the original effective date of the policy, the insured shall be entitled to the actual loss sustained not exceeding the sum insured. Nothing in this Code section shall be construed as prohibiting the use of coinsurance or as preventing the insurer from repairing or replacing damaged property at its own expense without contribution on the part of the insured.

(b) Subsection (a) of this Code section shall not apply where:
(1) The building or structure is not wholly destroyed by fire;
(2)(1) Insurance policies are issued or renewed by more than one company insuring the same building or structure against fire loss and the existence of the additional insurance is not disclosed by the insured to all insurers issuing policies;
(3)(2) Two or more buildings or structures are insured under a blanket form for a single amount of insurance; or
(4)(3) The completed value of a building or structure is insured under a builders´ risk policy."

SECTION 2.
This Act shall apply to all policies of insurance issued, delivered, issued for delivery, or renewed in this state on or after the date this Act becomes effective.

SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.