![Bill to require insurance companies to pay additional living expenses to policyholders who have coverage and not deny on evacuation technicality passes in Louisiana House](https://media-cdn.socastsrm.com/wordpress/wp-content/blogs.dir/2176/files/2021/11/hurricane-ida.jpg)
Hurricane Ida 2021.
The Louisiana House approves a bill requiring insurers that offer loss of use of coverage to provide two weeks of evacuation living expenses to policyholders even if a mandatory evacuation is not called. The legislation is in response to Hurricane Ida which rapidly intensified and didn’t allow for a government-ordered mandatory evacuation Metairie Representative Laurie Schlegel’s bill will keep insurance companies from denying such coverage in the future.
“So, for those sort of instances where they do have a voluntary evacuation and on the backend a declaration of disaster is declared then that would be triggered, that coverage would be triggered,” said Schlegel.
State Farm denied policyholders who had the coverage, two weeks of additional living expenses, on the technicality that a mandatory evacuation wasn’t enforced.
Pollock Representative Gabe Firment opposed House Bill 83 because he said it’s a reaction to a rare occurrence and worries when a mayor in one area of the state calls for an evacuation it could impact insurance rates in other parts of the state.
“If we’re creating a new coverage that essentially in my opinion the Mayor of New Orleans has the ability to impact what policyholders pay in Shreveport, in Monroe…,” said Firment.
Both Schlegel and Kenner Representative Joseph Stagni reiterated that the bill does not create additional coverage it only forces an insurance company to pay expenses of those who have the coverage. Stagni said he received numerous calls from constituents who were denied such expenses.
“And for the insurance commissioner, who by many rights is considered pro-business, pro-insurance, has stepped up and said this is needed,” said Stagni.
The bill passed on a 68 to 31 vote.
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