At Godbey Giardina Law Group, we represent homeowners who rely on their insurance carriers after disaster strikes. Louisiana’s new Act 406, signed into law by Governor Jeff Landry, tackles a long-standing problem: insurance companies secretly altering adjusters' estimates without telling anyone.
That practice—now legally classified as fraud—undermines trust and shortchanges policyholders when they need help the most. Act 406, which goes into effect July 1, 2026, is a major win for homeowners.
What Does Act 406 Do?
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Makes it insurance fraud to change original, revised, or supplemental estimates without notifying the author.
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Requires all changes to be fully documented in the claim file.
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Holds insurers accountable for tampering with professional assessments.
Is This a Real Problem?
Yes. On May 13, 2025, whistleblowers testified before a U.S. Senate subcommittee about misconduct at major carriers like Allstate and State Farm:
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Adjusters were pressured to cut damage estimates—some from $500,000 down to $100,000—or lose access to claims.
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Claims would be reassigned if an adjuster refused to alter reports.
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Senator Josh Hawley called it “institutionalized fraud.”
Why Act 406 Matters for Homeowners
It Creates a Deterrent
Insurers now face consequences for altering estimates without notice.
It Ensures Transparency
Homeowners gain visibility into the claim process with required documentation and notifications.
It Enables Legal Action
Victims of manipulated claims now have clear legal standing.
It Promotes Ethical Standards
This law sets a new bar for fair practices in an industry marred by bad behavior.
The Bottom Line
Act 406 is more than reform—it’s a line in the sand. After years of quiet manipulation, Louisiana has taken a public stand to protect its homeowners.
At Godbey Giardina Law Group, we’ve seen firsthand how these practices hurt families—lowball offers, damage minimization, and adjusters being sidelined for doing the right thing. That ends now.
If you’ve been underpaid or denied unfairly, we’re ready to act. You have rights, and we’re here to enforce them.
What Can You Do?
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Document Everything: Save emails, reports, and photos.
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Get a Second Opinion: Independent adjusters can verify your losses.
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Know Your Policy: Understand your rights. Try our free policy review tool online.
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Talk to a Lawyer: If your claim is mishandled, legal action might be your best path forward.
