Committee advances bill allowing homeowners to buy "stated value" policies amid coastal insurance squeeze

The House Insurance Committee narrowly reported House Bill 356 favorably after a long, often emotional committee hearing focused on insurance access in coastal and high‑cost areas. The measure would allow homeowners to purchase a stated‑value homeowners policy — a contract that sets an agreed dollar limit on coverage rather than a full replacement‑cost value.

Representative Brose (bill sponsor) told the committee he wants to give homeowners an option where full replacement‑cost premiums are unaffordable. “People need another option,” he said, describing cases where homeowners own their houses outright but cannot afford high premiums and would prefer to insure some set amount of equity rather than the full replacement cost.

Supporters, including several committee members from southern parishes, said the bill could prevent owners from being forced into forced‑placement policies or surrendering homes. “Let’s give our citizens the option to get as much coverage as they can afford so they have something,” Representative Glorioso said.

Opponents and industry witnesses cautioned that stated‑value products can leave homeowners short after a loss. Multiple industry witnesses and agents explained that most homeowner claims are partial losses, and the bottom layers of coverage are the most expensive; a stated‑value policy can therefore yield limited premium savings while exposing policyholders to out‑of‑pocket shortfalls and potential litigation over claims and agent disclosures. Farm Bureau and other insurers said the bill would complicate reinsurance purchasing and portfolio modeling.

Committee members pressed sponsors on consumer education, mortgage requirements and practical mechanics. Representative Wilder said the measure would increase consumers’ choices but stressed the need for strong disclosures and consumer education so buyers understand they are exchanging broader protection for lower premium costs. Speaker Pro Tem Johnson offered to work with the sponsor and the insurance commissioner to develop alternatives and directed follow‑up discussions before the floor.

The motion to report HB 356 favorably passed on a roll call, 8 yeas and 7 nays. Committee members recorded support for continued collaboration with industry and the Department of Insurance to refine product design, disclosures, and an effective date to allow insurers time to file forms and rates.