MN SF4406

Homeowner's insurance policies cannot exclude coverage for property damage caused by peace officers using chemical irritants, smoke screens, or distraction devices when the homeowner is owed just compensation under existing law (section 626.74)

Local governments remain obligated to pay just compensation to homeowners for such damage; the insurance prohibition does not shift this responsibility

Insurers may require homeowners to subrogate (transfer) their right to collect just compensation from the government to the insurer after a claim is paid

Effective January 1, 2027, applying to homeowner's insurance policies offered, issued, or renewed on or after that date

Creates new section 65A.304 in Minnesota Statutes and amends existing scope provisions in section 65A.27