This bill amends Minnesota Statutes section 65A.27 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 under section 626.74, 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 introduces new provisions that require insurers to allow homeowners to select mitigation contractors and industrial hygienists to assess and remediate damage caused by peace officers. It establishes that if an insurer pays for such damages, they are subrogated to the homeowner's right to recover just compensation from the responsible local government unit. The bill also outlines the conditions under which reimbursement must occur and mandates that any deductible paid by the homeowner must be returned to them if the insurer is reimbursed by the local government. The new provisions will take effect on January 1, 2027, for homeowner's insurance policies offered, issued, or renewed on or after that date.

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