HB 825: INSURANCE: Provides relative to the Stated Value Homeowner's Policy Act - Louisiana

HB825 Original → HB825 Act 319 · 5 edits

MODERATE

The bill was amended to expand the list of sponsors and update the legislative description to reflect the new requirements for stated value policies. The most significant change is the addition of a requirement for homeowners to provide a written payoff statement and a mortgage certificate from the clerk of court when electing a stated value policy. Additionally, the bill now mandates that insurers prominently disclose these policy options in all consumer documents and requires a specific boldfaced warning notice if coverage is limited to the mortgage balance.

Scope change

The bill's scope expanded to include Representatives Braud and Mandie Landry as sponsors and to cover the full range of stated value policy regulations, including new homeowner documentation requirements and insurer disclosure obligations.

REQUIREMENT

Homeowners must now submit a written payoff statement and a mortgage certificate from the clerk of court when applying for or renewing a stated value policy.

Insurers must prominently disclose stated value policy options in all policy proposals, agreements, and renewal documents.

A specific boldfaced warning notice must be provided to insureds if the policy coverage limit equals only the unpaid mortgage balance, warning of potential equity loss.

DEFINITION

The definition of 'stated value policy' was updated to clarify that coverage is based on the declared value rather than solely on market replacement cost.

TECHNICAL

The bill text was updated to include a second sponsor, Representative Mandie Landry, and corrected the legislative description to accurately reflect the new provisions.

HB825 Enrolled → HB825 Original · 6 edits

MODERATE

The bill was significantly shortened and simplified, removing the requirement for the insurance commissioner to distribute informational materials to homeowners about stated value policies. The original version also included broader definitions and requirements for offering these policies that were stripped out in favor of a single, focused amendment to the existing law.

Scope change

The bill's scope was narrowed from a comprehensive overhaul of stated value policy regulations to a specific amendment addressing only the dissemination of information requirements.

REQUIREMENT

Eliminated the mandate for the insurance commissioner to send informational materials to homeowners at least once every two years.

Removed provisions requiring homeowners to submit written payoff statements and mortgage certificates when electing a stated value policy.

Deleted the specific warning notice that insurers must provide to homeowners regarding the financial risks of limited coverage.

Stripped the requirement that insurers cannot issue stated value policies for amounts less than the verified mortgage balance.

Condensed the law to only require the commissioner to maintain a dedicated section on the department's website for consumers to access informational materials, removing the distribution mandate.

DEFINITION

Deleted the section defining 'stated value policy' and the requirement for insurers to offer this option to homeowners upon request.

HB825 Engrossed → HB825 Enrolled · 3 edits · May 18, 2026

MINOR

The bill was finalized for signature, changing the sponsor list to include Representative Mandie Landry and adjusting page counts. Substantive policy changes include clarifying that homeowners must submit payoff statements from each lender holding a mortgage, updating the policy warning text to explicitly mention the loss of home equity, and adding a requirement for the insurance commissioner to distribute informational materials to homeowners at least once every two years via direct mail or email.

Scope change

The bill's scope regarding consumer protection was expanded by adding a specific mandate for the insurance commissioner to actively distribute educational materials to homeowners, whereas the previous version only required the creation of a website section.

REQUIREMENT

Updated the payoff statement requirement to specify that a statement must be submitted from each financial institution or entity holding a mortgage or lien on the property.

Added a new requirement for the insurance commissioner to distribute informational materials about stated value policies to homeowners at least once every two years through direct mail, email, or other appropriate means.

DEFINITION

Revised the policy warning language to explicitly state that a total loss could result in the loss of some or all of the homeowner's equity.

INSURANCE: Provides relative to the Stated Value Homeowner's Policy Act

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