Personal property coverage; option to exclude

A. (1) Upon a disaster being declared by the governor or the president of the United States or any officer acting under presidential authority, any insurance company that issues a homeowner's insurance policy, as defined in R.S.22:47, that includes personal property coverage in the affected area, shall make available during the term of the policy, upon written request of a policyholder, one of the following options:

(a) A residential property policy that provides dwelling coverage without personal property coverage.

(b) An exclusion of personal property coverage.

(2) Upon the exercise of either option by the policyholder, the insurer shall calculate an appropriate reduction in premium that shall be returned to the policyholder.

(3) The option provided in Paragraph (1) of this Subsection shall not be available to the policyholder after the passage of twenty-four months from the date the disaster declaration is made.

B. Notwithstanding any provision of law to the contrary, the substitute policy or exclusion of personal property coverage that occurs during the term of the policy shall not be considered a new policy. This Section shall apply only to homeowners' insurance policies written on structures rendered uninhabitable as determined by the local governing authority or insurer because they sustained extensive damage to more than fifty percent of the dwelling area. In addition, the insurer may withdraw the exclusion or substitute policy when one of the following has occurred:

(1) The structure has been repaired to the point that it is again habitable.

(2) The homeowners' policy has been terminated.

(3) The expiration of twenty-four months from the date of the disaster declaration.

Acts 2007, No. 449, §1, Para. (A)(1) eff. July 20, 2007, Para. (A)(2) eff. July 11, 2007; Acts 2008, No. 125, §1; Redesignated from R.S. 22:667.1 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2017, No. 219, §1, eff. Jan. 1, 2018.