Statement of value in policy; evidence of ownership of property; exceptions

40-905. Statement of value in policy; evidence of ownership of property; exceptions. (a) (1) Whenever any policy of insurance or an increase in the amount of coverage in an existing policy of insurance shall be written to insure any improvements upon real property in this state against loss by fire, tornado, windstorm or lightning, and the property insured shall be wholly destroyed, without criminal fault on the part of the insured or the insured's assigns, the amount of insurance written in such policy shall be taken conclusively to be the true value of the property insured, and the true amount of loss and measure of damages, and the payment of money as a premium for insurance shall be prima facie evidence that the party paying for such insurance is the owner of the property insured. (2) Improvements on real property shall not be required to be insured for more than the reasonably estimated replacement cost of such improvements. Nothing herein shall prohibit a policy or endorsement to a policy as described in this subsection from containing an inflation guard provision or similar provision. Nothing in this section shall be deemed to create a private cause of action. For the purposes of this paragraph, "improvements on real property" means a fixture, building or other structure attached to real property and intended as a permanent addition to such real property. (b) The provisions of subsection (a) shall not apply to: (1) New policies of fire insurance or existing policies of fire insurance where there has been an increase in the amount of coverage of 25% or more, until such policies have been in effect for at least 60 days. If there is a total loss by fire within the sixty-day period and the insurer pays less than the face value of the policy, the insurer shall refund the difference in premium between the amount of insurance purchased and the premium applicable for the amount of the loss actually paid. This paragraph shall not apply to a loss by fire caused by lightning. (2) Builder's risk policies of insurance covering property in the process of being constructed. The value of the property insured shall be the actual value of the property at the time of the loss. History: L. 1927, ch. 231, 40-905; L. 1981, ch. 192, § 1; L. 2005, ch. 163, § 9; July 1. Source or prior law: L. 1893, ch. 102, § 1; L. 1897, ch. 142, § 1; R. S. 1923, 40-413. Law Review and Bar Journal References: 1957-59 survey of insurance law, Charles H. Oldfather, Jr., 8 K.L.R. 308 (1959). "New Developments in Kansas Insurance Law," Robert H. Jerry II, 37 K.L.R. 841, 847 (1989). CASE ANNOTATIONS 1. Mill machinery is real property. Assurance Co. v. Bradford, 60 Kan. 82, 55 P. 335. 2. Whether loss is total or partial is question for jury. Insurance Co. v. Heckman, 64 Kan. 388, 67 P. 879. 3. Total loss defined. Insurance Co. v. Heckman, 64 Kan. 388, 389, 67 P. 879; Syndicate Co. v. Insurance Co., 85 Kan. 367, 116 P. 620. 4. Loss of rents and reconstruction of building considered. Syndicate Co. v. Insurance Co., 85 Kan. 367, 116 P. 620. 5. Company is liable only for property destroyed. Kinzer v. Insurance Association, 88 Kan. 93, 96, 127 P. 762. 6. Building not "wholly destroyed" where part usable in reconstruction. McKenzie v. Fidelity-Phenix Fire Ins. Co., 133 Kan. 721, 723, 3 P.2d 477. 7. Full amount not recoverable where building could be repaired. Kotlarsky v. Fidelity Union Fire Ins. Co., 137 Kan. 609, 610, 21 P.2d 305. 8. Formal proof of loss held not necessary when improvement "wholly destroyed." Oberst v. Farmers Union Mut. Ins. Co., 138 K 768, 772, 28 P.2d 779. 9. Insured's house situated on property owned by another; improvement upon real property; purposes of valued policy law stated. Magrath v. Mechanics & Traders Insurance Company, 249 F.2d 98, 99, 100, 101, 102, 103. 10. Insured, not insurer, has burden of proof as to nature and extent of loss and that loss is covered by policy. U.S.D. No. 285 v. St. Paul Fire and Marine Ins. Co., 6 Kan. App. 2d 244, 245, 246, 249, 627 P.2d 1147. 11. Subsection (a) cited in holding cost of repairs not reduced by depreciation unless provided in policy. Thomas v. American Family Mut. Ins. Co., 233 Kan. 775, 776, 666 P.2d 676 (1983). Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived School Finance Documents USEFUL LINKS Session Laws Kansas Administrative Regulations OTHER LEGISLATIVE SITES Kansas Legislature Administrative Services Division of Post Audit Research Department Contact Us PDF Help www.ksrevisor.gov 2026