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Bill

HB 356

INSURANCE/PROPERTY: Creates the Stated Value Homeowner's Policy Act

2025 Regular Session Introduced by Roy Adams and 44 co-sponsors

Louisiana establishes stated value homeowners insurance policies where insured and insurer mutually agree on home value upfront, creating simpler but riskier coverage.

Signed by the Governor. Becomes Act No. 480.
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WeVote Research Nonpartisan
Bill Summary · HB 356

Legislative bill overview

HB 356 creates the Stated Value Homeowner's Policy Act in Louisiana, establishing a new type of homeowners insurance policy where the insured and insurer agree upfront on the home's value rather than using traditional replacement cost calculations. This allows homeowners to purchase coverage based on a mutually agreed-upon stated value, which becomes the policy's maximum coverage limit.

Why is this important

In Louisiana's challenging insurance market—marked by rising premiums, insurer exits, and affordability concerns—this option may provide homeowners with more predictable costs and simpler policies. However, it shifts risk significantly: homeowners who underestimate their home's value could face severe financial losses in a total loss scenario, while insurers gain protection against overvaluation claims.

Potential points of contention

  • Consumer undervaluation risk: Homeowners may systematically understate their home's value to lower premiums, leaving themselves dangerously underinsured in disasters
  • Market segmentation concerns: Could create a two-tiered market where lower-income homeowners choose stated value policies, concentrating risk among vulnerable populations
  • Regulatory oversight gaps: The bill's specifics on how disputes over stated value are handled, requirements for periodic revaluation, and consumer protections against insurer denials remain unclear without seeing the full text

Compiled from official sources — confirm details with the bill’s official record.

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