LA Governor Signs Legislation for Homeowners Discounts

Louisiana Governor Kathleen Blanco signed into legislation a bill introduced by the state’s House Speaker Joe Salter requiring insurance companies to give discounted rates to homeowners who build or renovate their homes to meet the new statewide building code or retrofit the structures to lessen the chances of storm or hurricane damage.

Published on July 11, 2007

Although the bill went into effect upon the governor’s signing, it does officials of the Department of Insurance and the panel that enforces the statewide building code until Jan. 1 to draft rules and regulations outlining guidelines of what will qualify for reduced or discounted premiums.

The bill was a central portion of Blanco's insurance package at the recently ended session. Salter's bill does not specify what amount of discount must be offered but says it must be "an actuarially-justified discount, credit rate differential or any other adjustment to reduce the insurance premium" for new or renovated homes.

Salter's bill also requires insurance companies to give discounted rates or other breaks on premiums to homeowners who "install mitigation improvements or retrofit their property" by using roof coverings, roof-to-wall strengthening procedures, wall-to-floor foundation strengthening, or window, door and skylight protection to minimize damage.