What the valued policy law does
Under Fla. Stat. 627.702, when a building or structure insured in Florida suffers a total loss caused by a covered peril, the insurer's liability is set at the amount for which the property was insured, the face amount on the declarations page for that coverage. The homeowner does not have to prove the property's actual value after the fact, and the insurer cannot pay less by arguing the home was over-insured. It applies to total losses; partial losses are still paid under the normal repair-cost rules.
How it connects to depreciation
Because the valued policy law fixes the total-loss payout at the policy amount, Fla. Stat. 627.7011 also requires that a total loss be paid without any reservation or holdback of depreciation. So on a genuine total loss there is no recoverable-depreciation holdback and no repair-by-repair release; the depreciation carriers withhold on partial claims does not apply. This is one reason the total-loss versus partial-loss line is so heavily contested in Florida claims.