Abstract: Provides for additional living expenses and fair rental value coverages under residential
insurance policies.
Proposed law provides that if a residential property insurance policy includes coverage for additional
living expenses or fair rental value, the insured dwelling sustains a covered loss, and the insured
location experiences a stoppage of water, electricity, sewer, or natural gas services, for a period of
at least 24 hours then the insured location shall be deemed uninhabitable, not fit to live in, or not fit
for its normal use, until the water, electricity, sewer, and natural gas services are restored.
Proposed law provides that proposed law applies only if a state of emergency has been declared by
the governor and shall only apply to geographic areas specified in the emergency declaration.
Proposed law provides that proposed law shall apply only to any insurer engaged in the business of
residential property insurance in this state.
Effective July 1, 2021.
(Adds R.S. 22:1897)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the original bill:
1. Make water, electricity, sewer, and natural gas services a finite list, rather than an
illustrative list, regarding utilities that when stopped for 24 hours constitute an
uninhabitable location and require all of these utilities to be restored to again become
considered inhabitable.
2. Apply proposed law to any insurer engaged in the business of residential property
insurance, rather than every insurer authorized to engage in such business.
3. Make proposed law only applicable when the governor has declared a state of emergency
and only applies proposed law to the area specified in the declaration.
4. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Add "the insured dwelling sustains a covered loss" to the requirements for a residential
property to be deemed uninhabitable, not fit to live in, or not fit for its normal use, for
the purposes of proposed law.