Bill > HF4133

This bill, effective January 1, 2027, prohibits homeowner's insurance policies from excluding coverage for property damage when an innocent third-party homeowner is entitled to "just compensation" (meaning fair payment for losses) and the damage results from a "peace officer's" (a law enforcement officer's) use of chemical irritants, smoke screens, or diversionary devices. The bill defines "industrial hygienist" as a certified professional who assesses and controls health hazards, and clarifies that this prohibition does not affect a local government's duty to pay just compensation or prevent other policy exclusions as long as coverage for just compensation isn't excluded. Furthermore, insurers must allow homeowners to choose mitigation contractors and, if needed, industrial hygienists to address such damage, with work adhering to industry standards. If an insurer pays for this damage, they are legally entitled to recover that amount from the responsible local government, and such payments are presumed reasonable and necessary unless proven fraudulent or made in bad faith; if the insurer is reimbursed, they must refund any deductible paid by the homeowner.