Bill > HB356

This bill creates the Stated Value Homeowner's Policy Act, which introduces a new type of residential property insurance policy in Louisiana that allows homeowners to declare a stated value for their property's insurance coverage, independent of the property's market value. The bill requires insurers offering residential property policies to provide a stated value policy option when requested, and mandates that insurers prominently disclose this option in policy documents. Homeowners seeking a stated value policy must submit documentation including a mortgage payoff statement and a mortgage certificate from the county clerk. The bill ensures that insurance coverage cannot be less than the outstanding mortgage balance and requires insurers to obtain a signed statement from homeowners acknowledging potential financial risks if the coverage is limited to the mortgage's unpaid principal. The Louisiana insurance commissioner is tasked with creating and distributing consumer educational materials explaining the risks and differences between stated value policies and other insurance options. The bill also establishes enforcement mechanisms, allowing the department to impose penalties on insurers who violate the new regulations, and includes a severability clause to protect the remainder of the law if any part is found invalid. The act will become effective upon the governor's signature or expiration of the bill-signing period.