Senate Bill 2366

AN ACT TO REQUIRE INSURANCE COMPANIES TO PAY NO LESS THAN TWENTY PERCENT OF THE POLICY LIMITS FOR THE DWELLING WHEN THERE IS A TOTAL LOSS; TO ALLOW THE INSURED TO RECOVER ADDITIONAL AMOUNTS BY FILING A CLAIM; TO PROVIDE A DEFINITION FOR TOTAL LOSS AS IT RELATES TO THIS ACT; TO PROVIDE THAT THE COMMISSIONER OF INSURANCE MAY PROMULGATE RULES AND REGULATIONS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) In the event of a covered total loss, the insurance company must offer payment of no less than twenty percent (20%) of the policy limit for the contents, as long as the home was furnished at the time of loss, up to a maximum of two hundred fifty thousand dollars ($250,000.00), without requiring the insured to file an itemized claim.

(2) After receiving the payment described in paragraph (1) of this section, the insured may recover additional amounts up to the policy limit for contents coverage by filing a claim pursuant to the terms of the policy for the loss of contents that exceeds the value of the payment provided pursuant to paragraph (1) of this section.

(3) When an insured files a claim relating to a total loss, the insurer shall notify the insured of the option to receive payment for loss of contents pursuant to paragraph (1) of this section and of the insured's option to subsequently file a full itemized claim pursuant to paragraph (2) of this section.

(4) For the purposes of this section, a covered total loss shall occur when the cost to repair or replace the covered damaged dwelling equals or exceeds the policy's coverage limit.

(5) The Commissioner of Insurance may promulgate rules and regulations necessary to carry out the provisions of this section.

SECTION 2. This act shall take effect and be in force from and after July 1, 2026, and shall apply to policies issued or renewed on or after January 1, 2027.