Louisiana House Bill HB451

Louisiana 2021 Regular Session

• Introduced: 4/2/21
• Refer: 4/2/21
• Refer: 4/12/21
• Report Pass: 4/28/21
• Engrossed: 5/6/21
• Refer: 5/10/21
• Report Pass: 5/12/21
• Enrolled: 5/19/21
• Chaptered: 6/1/21
• Passed: 6/1/21

Caption

Provides for discounts and insurance rate reductions for residential and commercial buildings built to, or retrofitted to, reduce the threat of loss due to windstorm events

Impact

The implementation of HB 451 is expected to enhance state laws regarding construction and insurance practices. The bill creates a formalized system for providing discounts linked to compliance with building codes, thereby fostering a regulatory environment that encourages property owners to invest in wind-resistant features. By doing so, it aims to reduce overall risk for insurance companies, which could have broader implications on premium rates and availability of insurance in hurricane-prone areas.

Summary

House Bill 451 addresses the insurance premiums for residential and commercial buildings, particularly those built or retrofitted to meet specific safety standards aimed at mitigating the threat of loss due to windstorm events. This legislation mandates that insurers provide discounts or other rate reductions for properties that comply with the 'fortified home' or 'fortified commercial' standards established by the Insurance Institute for Business and Home Safety. Essentially, the bill seeks to promote safer construction practices in Louisiana, aimed at reducing the insurance burden on homeowners and businesses in areas prone to severe weather.

Sentiment

The sentiment around the bill is largely positive among stakeholders who advocate for better disaster preparedness and increased safety standards in construction. Supporters argue that this will not only aid in the financial aspect of insurance premiums but will also potentially save lives and property during catastrophic weather events. However, some critics express concerns about the feasibility of compliance with the standards and whether the administrative burden may outweigh the benefits for smaller property owners.

Contention

While the bill enjoys support from various industry stakeholders, the debate around HB 451 also encompasses discussions about the practicality of the proposed certification processes needed to prove compliance with the fortified home standards. Some may fear that the requirements could deter homeowners from pursuing necessary upgrades or retrofitting, particularly if the costs associated with such upgrades are perceived as burdensome or unattainable. Ultimately, the contentions revolve around balancing the need for enhanced safety and compliance with the financial realities faced by property owners.