Bill > SF4406

This bill, effective January 1, 2027, prohibits homeowner's insurance policies from excluding coverage for property damage to an innocent third party when that damage results from a peace officer's use of chemical irritants, smoke screens, or diversionary devices, provided the homeowner is entitled to "just compensation" (meaning compensation for damages as defined in a related law). The bill clarifies that this does not affect a local government's duty to pay just compensation and that other policy exclusions, like those for civil authorities, are still permissible as long as coverage for just compensation itself is not excluded. Furthermore, insurers must allow homeowners to choose their own mitigation contractors and, if needed, "industrial hygienists" (professionals certified in assessing and controlling health hazards) to address such damage, with the work adhering to industry standards. If an insurer pays for damages covered by this bill, they are legally entitled to recover that amount from the responsible local government unit, which must reimburse the insurer for reasonable payments unless fraud or bad faith is proven; if reimbursement occurs, the insurer must then refund any deductible paid by the homeowner.