SB2366 • 2026

Homeowners insurance limits; require no less than 20% in cases of total loss.

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.

Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor: McMahan
Last action: 2026-02-03
Official status: Dead
Effective date: ** See Tex

Plain English Breakdown

The bill did not pass and was not signed into law.

Homeowners Insurance Limits for Total Losses

This bill requires insurance companies to pay at least 20% of the policy limit when a home is completely destroyed and allows homeowners to claim more money if needed.

What This Bill Does

Requires insurance companies to offer at least 20% of the policy limits for the dwelling in case of total loss, without needing an itemized list.
Allows insured individuals to file additional claims to recover up to their full policy limits after receiving initial payment.
Defines 'total loss' as the cost to repair or replace damaged property equaling or exceeding the insurance coverage limit.
Gives the Commissioner of Insurance authority to create rules and regulations for implementing this act.

Who It Names or Affects

Homeowners with insurance policies in Mississippi.
Insurance companies operating in Mississippi.

Terms To Know

Total loss: When the cost to repair or replace damaged property equals or exceeds the insurance coverage limit.
Policy limits: The maximum amount an insurance company will pay for a claim under a policy.

Limits and Unknowns

This bill did not pass and was not signed into law.
It applies only to policies issued or renewed on or after January 1, 2027, if it were to become law.
The exact rules and regulations for implementation are yet to be determined.

Bill History

2026-02-03 Mississippi Legislative Bill Status System
02/03 (S) Died In Committee
2026-01-19 Mississippi Legislative Bill Status System
01/19 (S) Referred To Insurance

Official Summary Text

Homeowners insurance limits; require no less than 20% in cases of total loss.

Current Bill Text

Read the full stored bill text

S. B. No. 2366 *SS36/R956* ~ OFFICIAL ~ G1/2
26/SS36/R956
PAGE 1 (rdd\kr)

To: Insurance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) McMahan

SENATE BILL NO. 2366

AN ACT TO REQUIRE INSURANCE COMPANIES TO PAY NO LESS THAN 1
TWENTY PERCENT OF THE POLICY LIMITS FOR THE DWELLING WHEN THERE IS 2
A TOTAL LOSS; TO ALLOW THE INSURED TO RECOVER ADDITIONAL AMOUNTS 3
BY FILING A CLAIM; TO PROVIDE A DEFINITION FOR TOTAL LOSS AS IT 4
RELATES TO THIS ACT; TO PROVIDE THAT THE COMMISSIONER OF INSURANCE 5
MAY PROMULGATE RULES AND REGULATIONS; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. (1) In the event of a covered total loss, the 8
insurance company must offer payment of no less than twenty 9
percent (20%) of the policy limit for the contents, as long as the 10
home was furnished at the time of loss, up to a maximum of two 11
hundred fifty thousand dollars ($250,000.00), without requiring 12
the insured to file an itemized claim. 13
(2) After receiving the payment described in paragraph (1) 14
of this section, the insured may recover additional amounts up to 15
the policy limit for contents coverage by filing a claim pursuant 16
to the terms of the policy for the loss of contents that exceeds 17
the value of the payment provided pursuant to paragraph (1) of 18
this section. 19
S. B. No. 2366 *SS36/R956* ~ OFFICIAL ~
26/SS36/R956
PAGE 2 (rdd\kr)
ST: Homeowners insurance limits; require no
less than 20% in cases of total loss.
(3) When an insured files a claim relating to a total loss, 20
the insurer shall notify the insured of the option to receive 21
payment for loss of contents pursuant to paragraph (1) of this 22
section and of the insured's option to subsequently file a full 23
itemized claim pursuant to paragraph (2) of this section. 24
(4) For the purposes of this section, a covered total loss 25
shall occur when the cost to repair or replace the covered damaged 26
dwelling equals or exceeds the policy's coverage limit. 27
(5) The Commissioner of Insurance may promulgate rules and 28
regulations necessary to carry out the provisions of this section. 29
SECTION 2. This act shall take effect and be in force from 30
and after July 1, 2026, and shall apply to policies issued or 31
renewed on or after January 1, 2027. 32