1. When real property incurs a total loss caused by a peril covered under an insurance policy and such total loss is a covered loss under the insurance policy, then the liability of the insurance company writing the policy shall be the amount of money for which the real property was insured, less any deductible, as specified in the policy.

2. This section shall not apply to:

(1) Any partial loss;

(2) Any personal property that is not scheduled;

(3) Any detached or appurtenant structure;

(4) Any builder’s risk policy;

(5) Any policy of mortgage insurance;

(6) Two or more buildings insured under a blanket basis or limit of insurance;

(7) Any loss in which the insured or one acting on the insured’s behalf engaged in any fraudulent or criminal activity that contributed to the loss;

(8) Any loss to property if the insured increased the risk of loss insured against within sixty days of the date of the loss without the consent of the insurer and the increase in the risk of loss was a cause of the loss;

(9) Any replacement cost coverage provided for in a policy or by endorsement, except that this section shall not be construed to prohibit an insured from recovering any replacement cost coverage pursuant to the terms and conditions of a policy or endorsement; or

(10) Any loss that is covered by two or more policies.

3. If two or more policies provide coverage for a total loss of real property caused by a peril, then the insureds may recover the face amount of the policy with the highest limit of coverage, and each policy shall contribute to the payment of the loss in proportion to the amount of insurance mentioned in each policy.

4. For a total loss to a commercial building that is insured on a blanket basis for a stated amount that covers two or more commercial buildings, the settlement of the claim shall be based on the initial value assigned to each affected commercial building before the loss, with any balance remaining being settled according to the terms and conditions of the policy.