In Texas, what is the Liquid Demand Clause associated with?

The Liquid Demand Clause is specifically associated with total loss situations, particularly in the context of real property experiencing destruction by fire in Texas. This clause typically allows the insured party to receive a predetermined amount, which facilitates the claims process by providing clarity and certainty regarding the compensation for a total loss.

In this scenario, when real property is completely destroyed, the Liquid Demand Clause ensures that the insured can recover the full value of the loss without needing to engage in protracted negotiations or disputes over the valuation of individual damaged items or components. This focus on total loss, especially due to fire, is crucial for ensuring that property owners can promptly recover and begin their rebuilding efforts without undue delay or financial strain.