Senate committee advances bill allowing homeowners to buy lower stated-value home insurance policies

Representative Brog told the Senate Commerce Committee that House Bill 356 creates a "stated value" homeowners insurance option intended to make coverage more affordable for homeowners with limited incomes or high replacement costs. Under the bill as amended, an owner-occupied home without a mortgage could be insured at any stated amount; for homes with a mortgage the bill would allow an owner to select an amount not less than fair market value (as defined in amendments using assessor data) and would require insurers to provide a stated-value option when requested by a consumer.

Sponsor and committee discussion focused on consumer protection and the practical effects of buying less-than-replacement coverage. Senator Abraham asked whether homeowners who buy $70,000 of coverage on a…