The basic property and casualty concepts are covered in the national basics guides: insurable interest, indemnity, negligence and liability, occurrence and claims-made coverage, and valuation. This guide collects the Louisiana rules that apply across P&C:

• the standard fire policy
• the valued policy law
• claim handling deadlines and penalties
• cancellation and nonrenewal, including the July 1, 2026 changes
• the 2026 switch to modified comparative fault
• the direct action statute
• Louisiana Citizens

Auto rules are in the Louisiana personal auto guide, and homeowners rules are in the Louisiana homeowners guide.

Fault and liability

Comparative fault (Civil Code art. 2323, as amended by Acts 2025, No. 15, effective January 1, 2026):

• Louisiana moved from pure comparative fault to a modified rule with a 51% bar.
• A claimant 51% or more at fault recovers nothing. A claimant less than 51% at fault recovers damages reduced by their percentage. For example, someone 40% at fault with $100,000 in damages recovers $60,000.
• The fault of everyone who contributed is quantified, including nonparties and immune parties such as an employer.
• If the injury came partly from an intentional tortfeasor, the claimant's recovery isn't reduced for their own negligence.

Direct action (R.S. 22:1269):

• Every liability policy must say the insured's bankruptcy or insolvency doesn't release the insurer.
• An injured person may sue the liability insurer directly only in listed situations:
  • the insured is bankrupt or insolvent
  • service on the insured failed
  • the claim is between spouses, or between parents and children
  • the insurer is a UM carrier
  • the insured has died
  • there is a coverage dispute
• The insurer is not named in the caption of the suit.
• Suing the insured interrupts prescription (the time limit to sue) against all insurers covering the claim.
• An insurer raising a coverage defense sends a reservation of rights within 90 days of discovering the defense, and no later than 30 days before trial.

The standard fire policy (R.S. 22:1311)

Every fire policy on Louisiana property must conform to the standard fire policy, or to an approved broader form.

Insuring agreement. Direct loss by fire, lightning, and removal from premises endangered by those perils. Other perils are added by endorsement.

What it doesn't cover:

• theft
• currency, deeds, money and securities

Conditions:

• Coverage is suspended while the insured knowingly increases the hazard, or while a building is vacant or unoccupied beyond 60 consecutive days.
• Concealment or fraud about a material fact, before or after a loss, voids the policy.
• Assignment needs the insurer's written consent.
• There is no abandonment of property to the insurer.
• Pro rata liability. Each insurer pays its share of the loss based on all insurance covering the property.
• Property removed to protect it is covered pro rata for 5 days at each place it is taken.

After a loss:

• The insured gives a sworn proof of loss within 60 days. If the insured doesn't, the mortgagee must do so within 60 days after notice.
• Appraisal. If the two appraisers can't agree on an umpire within 15 days, a judge picks one.
• If the insurer chooses to repair or replace instead of paying cash, it gives notice within 30 days after the proof of loss.
• The loss is payable 30 days after proof is received and the amount is fixed.
• Suits must start within 24 months after the loss begins.

Binders. A binder may be oral or written and includes the standard policy terms (22:1311(C)).

Valued policy law (R.S. 22:1318)

• If immovable property insured under a fire policy is totally destroyed, and the insurer used a valuation to set the premium, the insurer pays that valuation, without deduction or offset. The exception is a policy and application that state a different method in equal-size type.
• Not covered by the law: blanket-form policies and builders risk policies.
• Coverage may be voided for the insured's criminal fault.
• Liability never exceeds the insured's insurable interest.

Claim handling (R.S. 22:1892, 22:1892.2)

First-party property claims:

Third-party claims. A third-party property damage claim is paid within 30 days of a written settlement agreement.

Penalties:

• An arbitrary or capricious failure to pay within 30 days adds a penalty of 50% of the amount due, or $1,000 if greater, plus proven economic damages and attorney fees.
• The 30-day clock is suspended while a fire is under active arson investigation.
• Before suing for penalties on a catastrophe claim, the insured sends a 60-day written cure notice.

Other claim rules:

• Every insurer, including surplus lines insurers, owes its insured a duty of good faith and fair dealing. Insureds also owe good faith in presenting claims.
• General contractor overhead and profit is included when a contractor's services are reasonably foreseeable.
• The insurer may withhold recoverable depreciation until it has proof the deductible was paid.
• The insurer may not require a particular contractor or vendor.
• Residential appraisal. Each side names an appraiser within 20 days of a written demand, and they split the umpire's costs.
• A properly endorsed claim check may not be delayed more than three business days in processing.
• The producer of record is notified of property claim payments.

Cancellation and nonrenewal

General P&C policies (R.S. 22:887, as amended by Acts 2025, No. 182, effective July 1, 2026):

• Cancellation needs 60 days' notice, which must state the cause. Nonpayment needs 10 days.
• Nonrenewal needs 60 days' notice stating the cause.
• The notice period runs from the mailing date.
• Mortgagees get the same notice.
• The insurer's proper notice is enough. The producer doesn't have to send a separate one.
• Unearned premium is refunded pro rata.
• If a cancelled policy is reinstated, everyone who got the cancellation notice gets a reinstatement notice.
• A cancelled insured may ask for the reasons in writing within six months (22:1265(A)(1)).

Commercial policies (R.S. 22:1267):

• The law covers commercial property, auto, multi-peril, workers' comp, professional E&O and liability policies. It excludes excess and umbrella, surplus lines, residual market, multistate and retrospectively rated policies.
• Canceling a new policy in its first 60 days needs 60 days' notice, or 10 for nonpayment.
• After 60 days, cancellation is limited to listed reasons. Those include acts that increase the hazard, such as ignoring loss control recommendations.
• Nonrenewal needs 60 days' notice and includes up to three years of loss runs.
• A change in deductible, rate, limits or coverage isn't a nonrenewal. Still, a renewal with a rate increase, higher deductible or reduced coverage needs 60 days' notice, unless it is a class-wide filed change or one the insured requested.
• An extension of 90 days or less needs no new nonrenewal notice.

Louisiana Citizens Property Insurance Corporation (R.S. 22:2292, 22:2303)

• Citizens is the residual market property insurer. It runs the FAIR Plan and the Coastal Plan.
• Insurable property is property at a fixed Louisiana location, in insurable condition, when basic coverage isn't available in the voluntary market.
• Essential property insurance includes fire with extended coverage and vandalism, monoline wind and hail, homeowners, and monoline business interruption.
• Citizens rates are not meant to compete. They must exceed the higher of the actuarially justified rate, or the highest rate of insurers with at least 2% of the parish market, by at least 10%.
• Coastal Plan. A structure begun after July 29, 1970 must be built substantially to the Standard Building Code to qualify.
• Citizens and LIGA aren't subject to class actions for penalties. Citizens isn't liable for damages or penalties beyond the policy limit (22:1892(H)).

Other Louisiana P&C rules

• Suit limits (22:868). A policy may not limit a first-party property suit to less than 24 months after the loss, or other claims to less than one year. It may not require construction under another state's law.
• Certificates of insurance (22:890). They use standard forms from the insurer, ACORD, AAIS or ISO. They can't alter coverage or give the holder contract rights. Willful violations can cost $1,000 each.
• Rates (22:1451, 22:1454).
  • Rates must not be excessive, inadequate or unfairly discriminatory, and may not be classified by race, color, creed or national origin.
  • Filings are deemed approved unless the Commissioner objects within 30 days.
  • Large commercial accounts paying $10,000 or more in premium (other than workers' comp and medical malpractice) are filed for information only.
  • Fines can't be used in setting rates.
• Binders (22:870) are valid only until the policy is issued.

Common exam traps

• Since January 1, 2026, a claimant 51% or more at fault recovers nothing. Louisiana was pure comparative before 2026.
• Direct action is allowed only in listed situations, and the insurer isn't named in the caption.
• Since July 1, 2026, cancellation and nonrenewal need 60 days' notice and must state the cause. Nonpayment needs 10 days.
• Under the standard fire policy, proof of loss is due in 60 days, the vacancy limit is 60 days, theft is excluded, and suit must be filed within 24 months.
• A property claim must be adjusted within 14 days and paid within 30. The late-payment penalty is 50% or $1,000.
• Under the valued policy law, a total fire loss is paid at the valuation used for the premium.
• Citizens runs the FAIR and Coastal Plans at non-competitive rates.