DisputeVoice Consumer Authority Series

Louisiana Insurance Coverage Basics

Homeowner’s Guide to Roofing Claims, Bad Faith Reforms, and Policyholder Rights

Published by DisputeVoice · Updated February 2026

Introduction: Louisiana’s Insurance Crisis

Louisiana’s property insurance market has been among the most volatile in the nation. Between 2020 and 2021, five catastrophic hurricanes—Laura, Delta, Zeta, Ida, and Nicholas—inflicted damage to hundreds of thousands of homes across the state, generating billions of dollars in insured losses. The resulting claims overwhelmed the market. At least 11 Louisiana home insurance companies were declared insolvent between 2021 and 2022, and a similar number stopped writing policies in the state entirely. Homeowners who could still obtain private coverage faced severe premium increases—with average costs surging 38% in 2024 alone to exceed $10,000 per year for a $300,000 home, among the highest in the nation. Louisiana Citizens Property Insurance Corporation, the state’s insurer of last resort, saw its policy count grow as private carriers withdrew.

In response, the Louisiana Legislature enacted a comprehensive package of insurance reforms in 2024 and 2025, championed by Insurance Commissioner Tim Temple. The stated goal was to stabilize the market by making Louisiana more competitive for insurers, thereby increasing availability and eventually reducing costs. Some reforms benefit homeowners directly. Others shift risk and responsibility. This guide explains the current legal framework for residential roofing claims so that Louisiana homeowners can understand their rights, obligations, and remedies.

Types of Coverage: ACV vs. RCV in Louisiana

Actual Cash Value (ACV)

An Actual Cash Value policy pays the depreciated value of the damaged property at the time of the loss. Louisiana law provides important protections around how depreciation is calculated. Under La. R.S. 22:1892(B), depreciation must be “reasonable and based on a combination of objective criteria and subjective assessment, including the actual condition of the property prior to loss.” When depreciation is applied, the insurer must provide a written explanation of how it was calculated. The insurer may not simply apply a straight-line depreciation formula based on age alone—it must consider the roof’s actual condition before the damage occurred.

Replacement Cost Value (RCV)

A Replacement Cost Value policy pays the full cost to replace the damaged property with materials of like kind and quality. RCV policies in Louisiana typically pay in two stages: an initial payment reflecting ACV (replacement cost minus depreciation and deductible), followed by a recoverable depreciation payment once the homeowner completes repairs and provides documentation such as photographs of completed work and a signed certificate of completion.

Understanding Your Deductible

Louisiana homeowners insurance policies typically include a flat dollar deductible for “all other perils” and a separate hurricane or named-storm deductible. The hurricane deductible is often expressed as a percentage of the dwelling coverage limit—commonly 2% to 5%. A 2% hurricane deductible on a $300,000 policy means the homeowner is responsible for the first $6,000 of hurricane damage. Some policies also include separate wind/hail deductibles. Review your declarations page carefully to understand which deductible applies to each type of loss, as this directly affects your out-of-pocket exposure.

The 2024 Bad Faith Reforms: Act 3 (Senate Bill 323)

On May 7, 2024, Governor Jeff Landry signed Senate Bill 323 into law as Act No. 3, effective July 1, 2024. This legislation represents the most significant overhaul of Louisiana’s bad faith insurance statutes in decades, restructuring the relationship between policyholders and insurers in several important ways.

Repeal of La. R.S. 22:1973 and Consolidation into La. R.S. 22:1892

Prior to Act 3, Louisiana had two separate bad faith statutes: La. R.S. 22:1892 (governing payment timelines and penalties) and La. R.S. 22:1973 (governing the insurer’s general duty of good faith). The two statutes operated in parallel, and policyholders could sometimes recover penalties under both. Act 3 repealed La. R.S. 22:1973 in its entirety and incorporated its substantive provisions into an expanded La. R.S. 22:1892(I). The insurer’s duty of good faith and fair dealing remains enforceable, but the double-damages penalty that was available under former 22:1973 has been eliminated.

The 30-Day Payment Rule

Louisiana’s core claims timeline remains in place under La. R.S. 22:1892(A): the insurer must pay the amount of any claim due within 30 days after receipt of satisfactory proof of loss. If the insurer fails to pay within 30 days, and that failure is found to be arbitrary, capricious, or without probable cause, the insurer is subject to a penalty of 50% of the amount found to be due (or $1,000, whichever is greater), plus proven economic damages, attorney fees, and costs. This is one of the most aggressive policyholder-protection timelines in the country.

14-Day Adjustment Initiation

The insurer must begin adjusting a claim within 14 days of receiving notice of the loss. For catastrophic losses (hurricane or gubernatorial/presidential emergency declaration), the insurer has 30 days to begin adjusting, with a possible additional 30-day extension that requires approval from the Senate and House Committees on Insurance. After the insurer’s adjuster completes the inspection, the homeowner may request a copy of the field adjuster’s report, which must be provided within 15 days.

Cure Period Notice for Catastrophic Losses

Act 3 created a new pre-suit requirement for catastrophic loss claims. Under La. R.S. 22:1892.2, before filing a bad faith lawsuit for penalties and attorney fees related to a catastrophic loss (a natural disaster with a presidential or gubernatorial emergency declaration), the homeowner must first provide the insurer with a written “cure period notice.” This notice must describe the facts and circumstances of the dispute and may include actual expenses incurred, including attorney fees not to exceed 20% of the amount alleged to be due. The insurer then has 60 days to respond. If the insurer pays the full amount sought within 60 days, there is no further cause of action. If the insurer makes a partial payment within 60 days, any resulting penalty is reduced by half. This provision adds a mandatory pre-litigation step that did not previously exist for hurricane claims.

“Reverse Bad Faith” — Insured’s Duty of Good Faith

Act 3 introduced a novel “reverse bad faith” provision under La. R.S. 22:1892(J). The insured, claimant, or their representative now also owes a duty of good faith and fair dealing when asserting a claim. Breach of this duty—such as failing to comply with policy obligations, misrepresenting facts, or submitting an estimate lacking evidentiary support—does not create a cause of action for the insurer, but the court must consider the insured’s conduct when determining whether the insurer should be penalized. This means that homeowners who submit inflated estimates or misrepresent damages may undermine their own bad faith claims.

The Three-Year Rule Repeal: Act 9 (House Bill 611)

For decades, Louisiana was the only state in the country with a “three-year rule”—a law that prohibited insurers from canceling, non-renewing, or increasing deductibles on homeowners policies that had been in force for more than three years. This rule provided substantial stability for policyholders but was criticized by the insurance industry as a barrier to market entry and effective risk management.

Act 9 (signed May 7, 2024) repealed the three-year rule. The repeal operates on a phased timeline. For policies issued after August 1, 2024, the rule no longer applies at all—insurers may non-renew or cancel at their discretion, subject to notice requirements. For legacy policies that were already covered by the three-year rule, insurers may file a plan with the Insurance Commissioner to non-renew up to 5% of those policies per calendar year. The 5% cap is not absolute: insurers may non-renew additional policies with the Commissioner’s approval. Cancellations cannot be concentrated in a single parish.

The Mandatory Appraisal Clause

Louisiana law (La. R.S. 22:1892(G)) requires every residential property insurance policy to include an appraisal clause. When the homeowner and insurer disagree on the amount of a covered loss (not whether the loss is covered), either party may invoke the appraisal process. Each side selects a competent appraiser, and the two appraisers select a neutral umpire. The appraisers then independently estimate the loss. If they cannot agree, the umpire makes the determination, and agreement by any two of the three parties is binding. This process addresses valuation disputes without litigation and is typically faster and less expensive than going to court. However, it does not resolve coverage disputes—only questions of how much a covered loss is worth.

Prohibited Contractor Practices: Acts 144, 239, and 422 (2025)

Louisiana’s 2025 legislative session produced three major acts that fundamentally restructured the relationship between roofing contractors and the insurance claims process. Together, these acts separate the roles of contractors and adjusters, mandate statewide permitting, and create new licensing requirements.

Act 144 (House Bill 121) — Contractor/Adjuster Separation

Act 144, effective August 1, 2025, prohibits public adjusters from acting as contractors or offering construction or roofing services related to the same insurance claim. This eliminates the conflict of interest that arises when the same person or company both assesses damage for insurance purposes and performs the repairs. The law also prohibits home improvement contractors from the following practices:

• Insurance claim specialist advertising: Contractors may not advertise themselves as “insurance claim specialists” or similar designations.
• Policy interpretation: Contractors may not offer insurance consulting services or interpret policy provisions as part of their sales process.
• Claims handling before filing: Contractors may not act as insurance adjusters or handle claims before the homeowner has filed a claim.
• Missing itemized estimates: Contractors may not provide an agreement to an insured homeowner without a clear, itemized cost estimate.

Act 239 — Statewide Roofing Permits and Inspections

Effective August 1, 2025, Act 239 requires every municipality and parish that issues building permits to also issue permits for and conduct inspections of all roof construction and reroofing projects. This applies to residential and commercial structures and covers compliance with Chapter 15 of the International Building Code (for commercial structures) and Chapters 8 and 9 of the International Residential Code (for one- and two-family dwellings). Before Act 239, roofing permits and inspections were not uniformly required across the state. This reform creates a documentation trail that benefits homeowners by ensuring that roofing work meets code—which is critical for future insurance eligibility and claims.

Act 422 — Residential Roofing License and Permit Violations

Act 422 addresses two critical areas. First, effective August 1, 2025, it makes the following actions violations of Louisiana law for contractors: failing to obtain a permit for work that requires one; beginning work before a permit is issued; misrepresenting the value or scope of a project; and failing to obtain required inspections. Second, effective January 1, 2026, Act 422 creates a new residential roofing license classification. Any person who advertises, solicits, bids on, or performs construction, modification, repair, or maintenance on a residential roofing system for a project valued at $7,500 or more must hold either a Residential Roofing license or a Residential Construction license through the Louisiana State Licensing Board for Contractors (LSLBC). The new license requires passing a specific trade examination and meeting a minimum net worth requirement of $50,000 (increased from $10,000).

The Louisiana Roof Registry

The 2025 legislative session also authorized the creation of a Louisiana Roof Registry, to be administered by the Insurance Commissioner. The registry is designed to collect information about roof installations, conditions, and certifications across the state. The goal is to streamline roof claim verifications and post-disaster inspections. The Commissioner is developing administrative rules detailing what information contractors and homeowners can submit and how it will be used. While the registry is still in its implementation phase, homeowners should be aware that it may eventually serve as a centralized source of roof documentation that could support insurance eligibility and claims.

The Claims Process in Louisiana

Step 1: Document the Damage Immediately

Photograph and video all visible damage as soon as conditions are safe—roof surfaces, gutters, siding, soffits, fascia, interior ceilings, walls, and any debris. Record the date, time, and weather conditions. Preserve National Weather Service alerts, local news coverage, and any emergency or disaster declarations. Under Louisiana law (La. R.S. 22:868), policyholders have two years to file suit against their insurer, but the earlier you document and report, the stronger your position.

Step 2: Mitigate Further Damage

Your policy requires you to take reasonable steps to protect your property from additional damage. Tarp exposed roof sections, board up openings, and move personal property away from water intrusion. Keep all receipts for emergency mitigation expenses—these costs are typically reimbursable under your policy. Louisiana law requires you to cooperate with your insurer and make the property reasonably available for inspection.

Step 3: File Your Claim Promptly

Notify your insurer as soon as possible. Provide a clear description of the damage, the date of the event, and your mitigation actions. Request a claim number and the assigned adjuster’s name and direct contact information. Under La. R.S. 22:1892, the insurer must begin adjusting your claim within 14 days of receiving notice (30 days for catastrophic losses).

Step 4: Submit Satisfactory Proof of Loss

Your insurer will likely require a sworn proof of loss statement. This document formally presents the amount of your claimed damages and triggers the 30-day payment clock under La. R.S. 22:1892. Prepare it carefully—the amount you state matters, as it becomes the baseline for the insurer’s payment obligation. Your policy may also require you to submit to an Examination Under Oath if requested by the insurer. Failing to comply with these obligations can jeopardize your claim.

Step 5: The Adjuster’s Inspection

The insurer will send a licensed adjuster to inspect the damage and prepare a scope of loss. You have the right to be present. You may request a copy of the field adjuster’s report within 15 days of its completion. If you believe the adjuster missed damage or undervalued the repair cost, you may hire a licensed public adjuster to prepare an independent estimate. Remember: under Act 144, your roofing contractor may not act as your adjuster or handle the claims process.

Step 6: Review the Settlement Within the 30-Day Window

The insurer has 30 days from receiving your satisfactory proof of loss to pay the claim. Review the settlement offer carefully. Verify that it includes overhead and profit when a general contractor is reasonably foreseeable, that depreciation is calculated reasonably with a written explanation, that the correct deductible is applied, and that all damaged areas are accounted for. If the 30-day deadline passes without payment, and the delay is arbitrary or without probable cause, bad faith penalties begin to apply.

When Your Insurer Underpays or Denies Your Claim

Internal Appeal

Request a written explanation of the settlement calculation and file a formal dispute with the insurer. Provide supplemental documentation including independent contractor estimates with line-item detail, additional photographs, and any analysis showing that the adjuster’s scope of loss is incomplete. Be specific about what was missed or undervalued, and reference the overhead and profit requirement (La. R.S. 22:1892(F)) and depreciation rules (La. R.S. 22:1892(B)) if applicable.

Appraisal

If you and your insurer agree that the loss is covered but disagree on the amount, invoke the mandatory appraisal clause required by La. R.S. 22:1892(G). You select your appraiser, the insurer selects theirs, and the two appraisers choose an umpire. Agreement by any two of the three is binding. Appraisal is generally faster and less expensive than litigation for resolving valuation disputes.

Louisiana Department of Insurance Complaint

File a complaint with the Louisiana Department of Insurance (LDI) at 1-800-259-5300 or online at ldi.la.gov. While the LDI cannot adjudicate individual claims, it can investigate insurer conduct, issue compliance directives, and refer patterns of abuse for enforcement action. A complaint creates a regulatory record that may strengthen your position.

Cure Period Notice (Catastrophic Losses)

For hurricane or disaster-related claims, you must provide the insurer with a written cure period notice before filing a bad faith lawsuit (La. R.S. 22:1892.2). The notice must describe the facts of the dispute and may include attorney fees not exceeding 20% of the amount alleged to be due. The insurer has 60 days to respond. Full payment within 60 days eliminates the cause of action; partial payment reduces the penalty by half. This is a mandatory pre-suit step—skipping it may result in dismissal of your bad faith claim.

Litigation

If internal remedies and appraisal do not resolve the dispute, litigation remains available. Louisiana policyholders have a two-year prescriptive period (statute of limitations) under La. R.S. 22:868 to file suit against their insurer for payment of property damages. Penalties and attorney fees under La. R.S. 22:1892 also have a two-year prescriptive period. If the insurer’s failure to pay is found to be arbitrary, capricious, or without probable cause, the court may award a penalty of 50% of the amount due (or $1,000, whichever is greater), plus proven economic damages, attorney fees, and costs. Note that the former double-damages penalty under repealed La. R.S. 22:1973 is no longer available for conduct occurring after July 1, 2024.

The Louisiana Fortify Homes Program

The Louisiana Fortify Homes Program, launched in late 2023 and administered by the Louisiana Department of Insurance, provides grants of up to $10,000 to eligible homeowners to upgrade their roofs to the FORTIFIED Roof™ standard developed by the Insurance Institute for Business & Home Safety (IBHS). FORTIFIED Roofs are designed and tested to withstand hurricane-force winds up to 130 mph and hail impacts up to 2 inches in diameter, reducing water intrusion from destructive storms by up to 95%.

The program has undergone several improvements under Commissioner Temple: it was converted from first-come to a lottery system, eligibility was concentrated in the coastal zone, the program’s sunset date was removed (Act 8, 2024), and a permanent funding source was established through the first $5 million of taxes collected from surplus and unauthorized insurance insurers. The Legislature has allocated a total of $45 million to the program.

To be eligible, the home must be a single-family, owner-occupied primary residence with a homestead exemption. The home must be structurally sound (unless damaged by a hurricane, wind, or hail event). Homeowners must provide proof of a wind insurance rider and, if in a flood zone, evidence of flood insurance. Upon grant approval, an LSLBC-licensed and LFHP-approved contractor must perform the work. Upon completion, an IBHS review team verifies that the installation meets FORTIFIED certification standards.

FORTIFIED Roof Tax Credit

In addition to the grant program, Louisiana enacted a state income tax credit of up to $10,000 for homeowners who complete a qualifying FORTIFIED roof installation. Governor Landry signed this legislation (House Bill 145) on June 30, 2025. Homeowners may combine the tax credit with a Fortify Homes grant to cover the remaining construction costs. The average cost of a FORTIFIED roof upgrade in Louisiana is approximately $16,229, meaning the combined $20,000 in potential state support may cover most or all of the cost. The tax credit is capped at $10 million statewide per fiscal year and issued on a first-come, first-served basis. Grant amounts received from the Fortify Homes Program are also exempt from Louisiana state income tax.

Louisiana Contractor Licensing Requirements

Louisiana requires contractors to be licensed through the Louisiana State Licensing Board for Contractors (LSLBC) under Title 37, Chapter 24 of the Louisiana Revised Statutes. Effective January 1, 2026, only contractors holding a Residential Construction or Residential Roofing classification may perform residential roofing work valued at $7,500 or more. The Residential Roofing license requires passing a specific trade examination and meeting a minimum net worth requirement of $50,000 (increased from $10,000 by Act 422).

Homeowners should verify a contractor’s license status at lslbc.louisiana.gov before signing any agreement. Contractors must operate under their licensed business name as registered with the LSLBC—all bids, contracts, and transactions must use the name on the license. Contracts with unlicensed contractors may be unenforceable, and unlicensed persons performing roofing work are subject to fines and cease-and-desist orders.

Under Act 422, contractors who fail to obtain required permits, begin work before permit issuance, misrepresent the scope or value of a project, or fail to obtain required inspections are in violation of Louisiana law and subject to disciplinary action by the LSLBC, including license suspension or revocation.

Key Louisiana Statutes and Regulations

Conclusion

Louisiana’s insurance framework has been reshaped by crisis. The five-hurricane sequence of 2020–2021 broke the market, and the 2024–2025 legislative response has altered the rules that govern every stage of a roofing claim—from how contractors may interact with homeowners, to how disputes are resolved, to whether your insurer can drop your policy at all.

The reforms contain real tradeoffs. The three-year rule repeal removes a uniquely strong consumer protection. The cure period notice adds a mandatory pre-suit step for hurricane claims. The elimination of double damages under repealed La. R.S. 22:1973 reduces the penalty exposure that historically incentivized insurers to settle. At the same time, the 30-day payment rule and 50% bad faith penalty remain among the strongest in the nation. The overhead and profit requirement is now statutory. The Fortify Homes Program and the new tax credit offer meaningful financial support for hurricane-resistant roof upgrades. And Acts 144, 239, and 422 create clear boundaries between contractors and the claims process that should reduce fraud and improve quality.

The Louisiana homeowner who understands these changes—who documents damage promptly, submits a careful proof of loss, monitors the 30-day payment deadline, and knows when to invoke appraisal or file a cure period notice—is positioned to recover what the law provides. The landscape has changed. Being informed is the most powerful protection you have.