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Department of Planning and Zoning
Recovery Assistance and Mitigation Planning
Wait Up! You may not need to rush repairs to get your depreciation.
Many of us have received notifications from the insurance companies that all work needs to be done in 180 days or we will lose our depreciation. Is that true? Every person with damages from Hurricane Ida needs to review their policy or ask their agent if they have an Actual Cash Value (ACV) policy or Replacement Cost Coverage. Louisiana Law protects homeowners by requiring all recoverable depreciation to be paid for up to one year from the event or when the policy holder received insurance payment. An excerpt of the law is below, and attached is a bulletin by the Insurance Commissioner in 2021 regarding insurance protections related to a declared emergency like Hurricane Ida.
Policy holders with Replacement Cost Coverage should know that they have a year to do work and collect depreciation. Look in the attachment also for other rights, such as the timeline to submit proofs of loss and restrictions on the insurance company canceling or not renewing policies.
The Commissioner may put out a similar bulletin regarding Hurricane Ida soon and the staff is available to answer questions. If you feel that you are not being treated fairly by your insurance company, call 225-342-5900 for advice or visit https://www.ldi.la.gov/onlineservices/ConsumerComplaintForm to submit a complaint.
La R.S.22. §1264. Presumption of coverage
B. For losses that arose due to a catastrophic event for which a state of disaster or emergency was declared pursuant to law by civil officials, for those areas within the declaration, any policyholder with replacement cost provisions shall be entitled to complete repairs to the property within one year from the date of the loss or the issuance of applicable insurance proceeds, whichever is later. Adherence to this provision shall entitle the policyholder with a replacement cost provision to receive full value of the covered damage that has been repaired, without reduction due to depreciation.
C. The provisions of this Section shall be applicable to all new policies and renewal policies delivered in the state of Louisiana after April 18, 2006.
Acts 2006, 1st Ex. Sess., No. 23, §1; Redesignated from R.S. 22:682 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.
Related InformationInsurance Commissioner Bulletin 2-2021
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