HLS 21RS-918 REENGROSSED
2021 Regular Session
HOUSE BILL NO. 458
BY REPRESENTATIVE FIRMENT
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE/HOMEOW NERS: Provides for additional living expenses and fair rental
value coverages under residential insurance policies
1 AN ACT
2To enact R.S. 22:1897, relative to residential property insurance; to provide for additional
3 living expenses and fair rental value coverages; to provide for effectiveness; and to
4 provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 22:1897 is hereby enacted to read as follows:
7 ยง1897. Residential property insurance; additional living expenses coverage; fair
8 rental value coverage
9 A. If a residential property insurance policy includes coverage for additional
10 living expenses or fair rental value, the insured dwelling sustains a covered loss, and
11 the insured location experiences a stoppage of water, electricity, sewer, or natural gas
12 services, for a period of at least twenty-four hours, the insured location shall be
13 deemed uninhabitable, not fit to live in, or not fit for its normal use until such time
14 as water, electricity, sewer, and natural gas services are restored.
15 B. This Section shall apply to any insurer that is engaged in the business of
16 residential property insurance in this state.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-918 REENGROSSED
HB NO. 458
1 C. This Section shall apply only if a state of emergency has been declared
2 by the governor, pursuant to R.S. 29:724, and shall apply only to those geographic
3 areas specified in the governor's emergency declaration.
4 Section 2. (A) This Act shall become effective on July 1, 2021.
5 (B) The provisions of Section 1 of this Act apply to any new policy, contract,
6program, or residential property insurance policy issued on and after July 1, 2021.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 458 Reengrossed 2021 Regular Session Firment
Abstract: Provides for additional living expenses and fair rental value coverages under
residential insurance policies.
Proposed law provides that if a residential property insurance policy includes coverage for
additional living expenses or fair rental value, the insured dwelling sustains a covered loss,
and the insured location experiences a stoppage of water, electricity, sewer, or natural gas
services, for a period of at least 24 hours then the insured location shall be deemed
uninhabitable, not fit to live in, or not fit for its normal use, until the water, electricity, sewer,
and natural gas services are restored.
Proposed law provides that proposed law applies only if a state of emergency has been
declared by the governor and shall only apply to geographic areas specified in the emergency
declaration.
Proposed law provides that proposed law shall apply only to any insurer engaged in the
business of residential property insurance in this state.
Effective July 1, 2021.
(Adds R.S. 22:1897)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
original bill:
1. Make water, electricity, sewer, and natural gas services a finite list, rather than
an illustrative list, regarding utilities that when stopped for 24 hours constitute
an uninhabitable location and require all of these utilities to be restored to again
become considered inhabitable.
2. Apply proposed law to any insurer engaged in the business of residential
property insurance, rather than every insurer authorized to engage in such
business.
3. Make proposed law only applicable when the governor has declared a state of
emergency and only applies proposed law to the area specified in the declaration.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-918 REENGROSSED
HB NO. 458
4. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Add "the insured dwelling sustains a covered loss" to the requirements for a
residential property to be deemed uninhabitable, not fit to live in, or not fit for
its normal use, for the purposes of proposed law.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.