This bill amends Minnesota Statutes to prohibit certain exclusions in homeowner's insurance policies regarding property damage caused by peace officers. Specifically, it ensures that if a homeowner is an innocent third party entitled to just compensation, their insurance policy cannot exclude coverage for damages resulting from a peace officer's use of chemical irritants, smoke screens, or diversionary devices. The bill also clarifies that local governments still have a duty to pay just compensation and allows for civil authority exclusions as long as coverage for just compensation is maintained.

Additionally, the bill mandates that insurers must allow homeowners to select mitigation contractors and industrial hygienists to assess and remediate damage caused by peace officers, following industry standards. It establishes that if an insurer pays for damages, they are entitled to recover those costs from the responsible local government unit, with provisions for reimbursement and attorney fees. The effective date for these changes is set for January 1, 2027, applying to all homeowner's insurance policies offered, issued, or renewed on or after that date.

Statutes affected:
Introduction: 65A.27
1st Engrossment: 65A.27
2nd Engrossment: 65A.27