LA HB356

Insurers offering residential property insurance in Louisiana may offer stated value policies upon homeowner request, allowing coverage based on a homeowner-declared value rather than market value

Homeowners electing stated value policies must submit a written mortgage payoff statement and a mortgage certificate from the clerk of court; minimum coverage must equal at least the parish-assessed fair market value for mortgaged properties

Insurers must obtain a signed acknowledgment in 18-point bold font warning that coverage limited to mortgage balance may result in significant financial losses, including potential loss of home equity, in the event of a total loss

Commissioner of Insurance must create consumer education materials explaining stated value policies, their risks compared to actual cash value policies, and distribute information to homeowners at least every two years

Violations may result in fines, license suspension, or revocation; assessors are protected from liability for duties performed under this act