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 356 Original 2025 Regular Session Braud
Abstract: Creates the Stated Value Homeowner's Policy Act to provide homeowners an option to
choose coverage based on the stated value of residential property.
Proposed law defines "stated value homeowner's policy", "property and casualty insurer", and
"homeowner".
Proposed law requires property and casualty insurers to offer a stated value homeowner's policy
option to consumers, allowing for insurance coverage based on a stated value of the residential
property as declared by the homeowner, rather than solely on the market value of the property.
Proposed law requires an insurer to prominently disclose stated value policy offerings in all
insurance policy proposals, agreements, and renewal documents provided to consumers.
Proposed law requires homeowners electing a stated value homeowner's policy to submit to insurers
a written payoff statement from the financial institution or other entity holding a mortgage on the
property to accurately reflect the outstanding balance or nature of the mortgage on the property at
the time of applying for or renewing the insurance policy. Further requires homeowners to provide
a mortgage certificate from the clerk of court indicating the presence or absence of a mortgage on
the property.
Proposed law requires property and casualty insurers to provide a coverage limit for the residential
property that is equal to the unpaid principal balance as stated on the payoff statement. Further
requires the insurer to obtain a statement signed by insureds which contains a certain notice
informing the insured of the election of a limit equal to only the unpaid principal balance of the
mortgage loan. Further provides other information related to the homeowner's risk.
Proposed law prohibits an insurer from issuing a stated value homeowner's policy for a sum less than
the verified outstanding balance of any mortgage on the homeowner's property, ensuring that the
insurance coverage adequately reflects the financial obligations associated with the property.
Proposed law requires the La. Dept. of Insurance (LDI) to enforce proposed law. Authorizes the LDI
to adopt, amend, and repeal administrative rules in accordance with the APA for implementation and
enforcement of proposed law.
Proposed law provides penalties as prescribed in the La. Insurance Code against property and
casualty insurers found in violation of proposed law. Proposed law provides that if any application of proposed law is held to be invalid, the application
of remaining portions of proposed law are not affected.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 22:1346.1-1346.5)