Louisiana 2017 Regular Session

Louisiana House Bill HB393

Introduced
3/31/17  
Introduced
3/31/17  
Refer
3/31/17  
Refer
3/31/17  
Refer
4/10/17  
Refer
4/10/17  
Report Pass
4/19/17  
Engrossed
5/1/17  
Engrossed
5/1/17  
Refer
5/2/17  
Report Pass
5/10/17  
Report Pass
5/10/17  
Enrolled
6/4/17  
Enrolled
6/4/17  
Chaptered
6/14/17  
Chaptered
6/14/17  
Passed
6/14/17  

Caption

Provides for the elimination of contents coverage on residential properties following a declared disaster

Impact

The implementation of HB 393 could significantly alter the landscape of residential insurance in Louisiana, especially for homeowners who have experienced disasters. By offering this new option for policyholders, the bill attempts to ease the financial burden during recovery periods post-disaster. However, it limits the availability of these options to a window of twenty-four months following a disaster declaration, which raises questions about long-term policyholder protection and financial security. The potential reduction in premiums may aid in recovery but could also create challenges for maintaining comprehensive coverage for personal property.

Summary

House Bill 393 aims to amend existing regulations regarding residential property insurance policies, particularly in the context of disasters declared by governmental authorities. The bill allows policyholders in affected areas after a disaster, specifically referencing past hurricanes like Katrina and Rita, the option to exclude personal property coverage from their homeowner's insurance policies. This exclusion, if exercised, leads to a potential reduction in insurance premiums for the duration of the policy. The changes are specifically applicable in coastal parishes where homeowners' properties have undergone significant damage, defined as over fifty percent of the dwelling area rendered uninhabitable.

Sentiment

The reception of HB 393 appears largely supportive, particularly among the representatives who sponsored the bill. They argue that it provides a necessary tool for residents affected by disasters, allowing for more manageable insurance costs during challenging recovery phases. However, there are likely concerns from consumer advocacy groups regarding the adequacy of protection for personal property, particularly for homeowners who might be vulnerable after a disaster. The sentiment reflects a conditional support, balancing the immediate financial relief with long-term implications for homeowners' insurance coverage.

Contention

A point of contention surrounding HB 393 is whether excluding personal property coverage adequately addresses the needs of homeowners in disaster-stricken areas. Critics might argue that while the premium reduction is beneficial, it may also lead to inadequate post-disaster recovery solutions if individuals choose to forego property coverage. Furthermore, there are questions about whether the specified timeframe for opting out of personal property coverage is sufficient for all homeowners, as the recovery from significant disasters can vary dramatically from case to case.

Companion Bills

No companion bills found.

Previously Filed As

LA HB1111

Insurance Coverage For Loss Declared Fire Disaster

LA HB577

Provides relative to residential flood coverage

LA HB1329

Residential flood insurance coverage; authorize.

LA HB1253

Provide for the refinancing of certain mortgages on properties affected by declared disasters.

LA H0013

Windstorm Coverage by Citizens Property Insurance Corporation

LA H1213

Windstorm Coverage by Citizens Property Insurance Corporation

LA HB90

Provides relative to donations received by public servants for the purposes of disaster aid or relief to provide aid or to offset losses resulting from a gubernatorially declared disaster or emergency

LA HB458

Provides for additional living expenses and fair rental value coverages under residential insurance policies

LA AB3012

Residential property insurance.

LA SB824

Insurers: declared disaster: homeowners’ insurance policies.

Similar Bills

No similar bills found.