HF 4133

2nd Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/21/2026 08:43 a.m.

A bill for an act
relating to insurance; prohibiting certain exclusions in homeowner's insurance
policies when damage is done by a peace officer; amending Minnesota Statutes
2024, section 65A.27, subdivision 1; proposing coding for new law in Minnesota
Statutes, chapter 65A.

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

Section 1.

Minnesota Statutes 2024, section 65A.27, subdivision 1, is amended to read:

Subdivision 1.

Scope.

For purposes of sections 65A.27 to deleted text begin 65A.302 deleted text end new text begin 65A.304 new text end , the following
terms have the meanings given.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027, and applies to
homeowner's insurance policies offered, issued, or renewed on or after that date.
new text end

Sec. 2.

new text begin [65A.304] DAMAGE BY PEACE OFFICERS; MITIGATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Industrial hygienist" means an individual who has:
new text end

new text begin (1) a certified industrial hygienist credential from the Board for Global EHS
Credentialing; or
new text end

new text begin (2) an equivalent certification from a nationally or internationally recognized accrediting
body demonstrating competency in the anticipation, recognition, evaluation, and control of
occupational and environmental health hazards.
new text end

new text begin (c) "Just compensation" has the meaning given in section 626.74, subdivision 1, clause
(1).
new text end

new text begin (d) "Peace officer" has the meaning given in section 626.84, subdivision 1, paragraph
(c).
new text end

new text begin Subd. 2. new text end

new text begin Exclusion prohibited. new text end

new text begin (a) A policy of homeowner's insurance must not exclude
coverage for property damage if the homeowner is an innocent third party entitled to just
compensation under section 626.74 and the damage results from a peace officer's use of
chemical irritants, smoke screens, or diversionary devices.
new text end

new text begin (b) Nothing in this section affects a local government's duty to pay just compensation
under section 626.74.
new text end

new text begin (c) Nothing in paragraph (a) prohibits a civil authority exclusion or other policy provision
as long as the coverage for just compensation is not excluded.
new text end

new text begin Subd. 3. new text end

new text begin Mitigation. new text end

new text begin (a) Under a policy of homeowner's insurance, an insurer must allow
a homeowner to choose a mitigation contractor and, if necessary, an industrial hygienist to
assess and remediate damage due to a peace officer's use of chemical irritants, smoke screens,
or diversionary devices, when the homeowner is owed just compensation under section
626.74.
new text end

new text begin (b) The work performed by a mitigation contractor or industrial hygienist under this
subdivision must follow recognized industry standards and, if applicable, chemical
manufacturer guidelines.
new text end

new text begin Subd. 4. new text end

new text begin Insurer subrogation and reimbursement. new text end

new text begin (a) If an insurer pays benefits to
or on behalf of a homeowner for damage described in this section, the insurer is subrogated
as a matter of law to the homeowner's right to recover just compensation from the responsible
local government unit.
new text end

new text begin (b) Payment made by an insurer under a policy of homeowner's insurance for damages
described in this section, if made in good faith and after reasonable investigation, is presumed
reasonable and necessary and must be reimbursed by the responsible local government unit.
Reimbursement may be denied only upon proof that the payment was obtained by fraud or
that the insurer acted in bad faith. If reimbursement is not made as required by this
subdivision, the insurer may bring an action to recover the amount paid and is entitled to
reasonable attorney fees, costs, and disbursements, including interest under section 60A.0811,
subdivision 2, paragraph (a).
new text end

new text begin (c) If an insurer is reimbursed by a local government unit pursuant to this section, the
insurer must remit to the homeowner an amount equal to any deductible the homeowner
has paid toward the damage.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027, and applies to
homeowner's insurance policies offered, issued, or renewed on or after that date.
new text end