As Louisiana’s legislative session approaches its June 12 conclusion, lawmakers are advancing several bills aimed at modifying home insurance policy structures and tax incentives, while others have failed to move forward.
Senate Bill 28, engrossed on June 9, would establish a tax credit for homeowners who install fortified roofs that meet or exceed standards set by the Insurance Institute for Business and Home Safety.
The credit would equal the full amount of qualified installation expenses, up to a maximum of $10,000 per homeowner. The total amount of credits the state may issue would be limited to $10 million. According to the bill, costs related to permits, inspections, and similar expenses would not qualify for the credit.
The measure would apply only to residential properties receiving a homestead exemption. Newly built homes, condominiums, and mobile homes would not be eligible under the proposed legislation.
While lawmakers advanced the roof tax credit bill, they rejected a broader home insurance proposal – Senate Bill 235 – following a 49-52 vote in the House on June 9. That bill would have created a tax credit equal to the cost of a home insurance premium, capped at $2,000.
The credit would have been available to homeowners with income at or below 200% of the federal poverty level and issued on a first-come, first-served basis, with a $10 million annual cap.
Based on current federal poverty guidelines, the income cap for SB 235 would have been approximately $25,000 for an individual. The proposal was designed to assist low-income homeowners facing increasing insurance costs, though it ultimately did not receive enough support in the House to advance.
Lawmakers are also reviewing a separate bill that would offer tax credits covering a portion of auto insurance premiums. That proposal, introduced earlier in the session, has not progressed since being referred to the House Committee on Ways and Means in April.
That bill, House Bill 331, would allow policyholders to claim a tax credit for auto insurance premiums exceeding $2,500 per vehicle, with a cap of $5,000 per vehicle. The provision would apply to up to two vehicles per household each tax year. Supporters argue the credit could provide some relief to residents contending with high vehicle insurance premiums in the state.
The House also reconsidered House Bill 356, which would allow home insurance policies to be issued based on a stated value rather than the current market value. The bill would permit homeowners or their agents to request that insurers issue policies based on the property's assessed value, as determined by the most recent parish records.
HB 356 passed the House in a 79-20 vote and is currently pending consideration in the Senate. The bill’s supporters argue that a stated value option would provide homeowners with greater flexibility in determining their insurance coverage needs, particularly for those seeking to align coverage with mortgage obligations rather than market valuations.
Under the bill, homeowners would be required to provide a payoff statement from their mortgage lender and a certificate from the clerk of courts indicating the mortgage status of the property. Those without a mortgage could request a stated value policy at any amount.
Before issuing such policies, insurers would be required to obtain a signed acknowledgment from the policyholder indicating awareness that the coverage is limited to the outstanding mortgage balance. The disclosure must make clear that homeowners could face financial loss if a claim exceeds that balance.
Critics of the bill have warned that stated value policies may leave homeowners underinsured, particularly in total loss scenarios. If policyholders choose coverage amounts that do not reflect replacement costs, they could face significant out-of-pocket expenses in the event of a disaster.
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