This bill amends property insurance laws in Minnesota by requiring all property insurance policies to include provisions for the appraisal of damages and alternative resolution methods. Specifically, it introduces a new section, [65A.261] PROPERTY INSURANCE; POLICIES; LOSS ADJUSTMENT, which mandates that if the insured and the insurance company cannot agree on the actual cash value or amount of loss, both parties must select a competent and disinterested appraiser within 20 days of a written demand. The bill also stipulates that a lawsuit to recover a claim cannot be initiated unless all policy requirements are met and the action is commenced within two years of the loss. Additionally, the bill repeals Minnesota Statutes 2024, section 65A.26, which previously governed hail insurance policies and their loss adjustment procedures. The new provisions will take effect on January 1, 2027, and will apply to losses occurring on or after that date. This legislative change aims to streamline the claims process and ensure fair resolution methods for property insurance disputes.

Statutes affected:
Introduction: 65A.26