This section sets rules for homeowners’ insurance separate deductibles for named storms, hurricanes, and wind-and-hail events, including required forms and when insurers must provide or resend them.
§1337. Homeowners' insurance deductibles applied to named storms, hurricanes, and wind and hail deductibles A. For purposes of this Section, the following definitions shall apply: (1) "Hurricane" means a storm system that has been declared a hurricane by the National Hurricane Center of the National Weather Service. (2) "Named storm" means a storm system that has been declared a named storm by the National Hurricane Center of the National Weather Service. (3) "Separate deductible" means a deductible that applies to damage incurred during a specified weather event and may be expressed as a percentage of the insured value of the property or as a specific dollar amount and includes hurricane, named-storm, and wind and hail deductibles. B. For all homeowners' insurance policies or other policies insuring a one- or two-family owner occupied premises for fire and allied lines, issued or renewed by authorized insurers on or after January 1, 2010, any separate deductible that applies in place of any other deductible to loss or damage resulting from a named storm or hurricane shall be applied on an annual basis to all named-storm or hurricane losses that are subject to the separate deductible during the calendar year. C. If an insured incurs named-storm or hurricane losses from more than one named storm or hurricane during a calendar year that are subject to the separate deductible referred to in Subsection B of this Section, the insurer may apply a deductible to the succeeding named storms or hurricanes that is equal to the remaining amount of the separate deductible, or the amount of the deductible that applies to all perils other than a named storm or hurricane, whichever is greater. Insurers may require policyholders to maintain receipts or other records of such losses in order to apply such losses to subsequent named-storm or hurricane claims. D.(1) The commissioner shall prescribe a separate form regarding named storm, hurricane, and wind and hail deductibles proposed in a policy of homeowners' insurance. The form shall list the specific amount for each deductible expressed as a percentage of the insured value of the property, or as a specific dollar amount, or as both. For new policies with an effective date after January 1, 2023, an insurer shall provide the form and request that it be signed by the named insured or his legal representative. The completion of a new form shall not be required if a renewal, reinstatement, substitute, or amended policy is issued to the same named insured by the same insurer or any of its affiliates. (2) An insurer shall provide a new form and request that it be signed by the named insured or his legal representative, if the insurer changes the percentage or specific dollar amount of any named storm, hurricane, or wind and hail deductible listed in the policy. If the policy uses a percentage deductible, a new form shall not be required if the dollar amount of the deductible changes because of an increase in policy limits; however, a new form shall be required if the percentage changes. (3) A new form provided to an insured shall be for the insured's informational purposes only, and it shall not affect the terms and conditions of the policy. (4) If a policy is purchased using electronic means or the insured elects to receive policy documents electronically, the insurer shall transmit the form provided for in this Subsection to the insured electronically and provide a method whereby the insured may sign the form electronically. (5) Nothing in this Subsection shall be interpreted to create a cause of action not otherwise provided by law. Acts 2009, No. 134, §1, eff. June 25, 2009; Acts 2022, No. 331, §1, eff. Jan. 1, 2023.