Property Damage Addendum Guidance

Louisiana REALTORS • September 24, 2020

Information provided by:
Patricia B. McMurray, JD and Melissa Grand, JD, 
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC

450 Laurel Street, Chase Tower North, 21st Floor Baton Rouge, Louisiana 70801

Addendum to Louisiana Residential Agreement to Buy or Sell

Many residential and commercial properties were partially or substantially damaged by hurricanes this year. This article addresses issues that Buyers and Sellers should consider when natural disasters strike during a pending real estate transaction. A sample addendum to the Louisiana Residential Agreement to Buy or Sell with several options for Buyers and Sellers is provided below.  
  • Does the mandatory Louisiana Residential Agreement to Buy or Sell (“RPA”) form provide an automatic extension of the contract deadlines because of natural disasters like a hurricane?

    Short Answer: 

    No, but Buyers and Sellers may want to consider an amendment to the Louisiana Residential Agreement to Buy or Sell.  A sample amendment is provided above.  This sample form is not a mandatory form.


    A more detailed response...

    The RPA form does not contain an Act of God or Fortuitous Event Clause which might provide an automatic extension.  In the absence of such a provision, it is possible that the RPA could be deemed in default upon the expiration of the deadline for closing, despite the occurrence of such disaster.  Generally, there is no Louisiana law that specifically grants purchasers in private contracts an automatic extension of time to perform such obligations in the event of a natural disaster.  However, the parties may certainly agree in writing to extensions of deadlines in the RPA.  Also, government Orders or the concepts of equity may impact the granting of additional time to complete a transaction.  See Transaction Guidance After a Natural Disaster for further discussion.  


    If the Buyer and Seller are agreeable, an amendment of the RPA could be signed.  A sample amendment with several options Buyers and Sellers can consider is included above. An annotated version with explanation on using the form is also included.

  • A Buyer and Seller signed an RPA, but before the closing, a hurricane struck and damaged the property. What happens with an insurance claim for the damage to the property?

    Short Answer:  

    It depends on the language of the insurance policy and whether the claim is assigned to the Buyer.  The lender may also be involved if there is a mortgage on the property.


    A more detailed response...

    Many insurance policies contain “anti-assignment” clauses which state the policy itself cannot be assigned without the consent of the insurance company.  However, a post-loss claim where the assignment is made after the loss event may be assignable (See In re Katrina Canal Breaches Litig., 645 F.3d 703, 706, 5th Cir. 2011) .   The specific contract language of the insurance policy should be reviewed to determine the rights and obligations of the parties.  


    Further, if the Seller has a mortgage on the property, the Seller will need to consult with his or her lender regarding the damage to the property and making an insurance claim.  Many mortgages include a provision that insurance proceeds will be assigned to the lender (See La. R.S. 9:5386 - a mortgage may include a pledge of the mortgagor's rights to insurance).   In such a case, the payment checks from the insurance company will be made payable to both the Seller and the lender.  The lender will hold the insurance proceeds and disburse payments of the insurance proceeds to the homeowner as repairs are incrementally made to the property.  Depending on the extent of the required repairs, this process may cause delays.  

    The RPA does not address assignment of insurance claims.  Without an assignment, only the Seller would be able to bring a claim for loss or damages under an insurance policy that was in place at the time of the damage, because the Buyer would not have standing to bring such a claim.  In such an instance, a Seller could reduce the purchase price by the amount of the claim that the Seller stood to recover, in order to put the Buyer in the same place that he or she would have been had no loss occurred.  

    If permissible by the insurance policy and lender, if there is a mortgage on the property, the Seller may assign the insurance claim to the Buyer.  Then, the Buyer would have the right, per the assignment, to collect the proceeds of the insurance claim and make the repairs to the property.  The sales price would not be reduced.  The parties may consider using the sample addendum to the RPA to put their agreed upon terms in writing.

  • My property sustained flood damage in a hurricane. I have flood insurance through the National Flood Insurance Program (NFIP). Where can I find information on next steps and guidance for handling my claim?

    Short Answer:  

    Contact your insurance agent to report the loss as soon as possible.  Also see FEMA guidance related to hurricanes, flood insurance claims, and what to expect during the claims process.  The NFIP Claims Handbook may be found here.

  • If there are no utilities to the property due to a natural disaster like a hurricane, can the closing still go forward?

    Short Answer: 

    Maybe, but there may be a delay until utilities are restored.   


    A more detailed response...

    Residential Real Estate:

    The RPA provides the seller must provide utilities for the due diligence period and the final walkthrough of the property (See RPA, lines 175-180).  The seller must also provide immediate access to the property.   If the utilities are not provided or available the deadline for the due diligence period is extended until the utilities are provided.


    Commercial Real Estate:

    For commercial properties, this will be very contract-specific as to whether loss of utilities will allow for any delay under the circumstances.  The specific contract should be examined carefully.  

Download Printable Version

Looking for more transaction guidance after a natural disaster? Click here for a list of frequently asked questions.


Disclaimer: These materials are to be used for informational purposes and should not be construed as specific legal advice. These materials are not designed to cover every aspect of a legal situation for every factual circumstance that may arise regarding the subject matter included.  The information in the article was last updated on September 22, 2020.


This publication is for reference purposes only and association members or other readers are responsible for contacting their own attorneys or other professional advisors for legal or contract advice. The comments provided herein solely represent the opinions of the authors and are not a guarantee of interpretation of the law or contracts by any court or by the Louisiana Real Estate Commission.

Compliant advertising under the Fair Housing Act
By Louisiana REALTORS® April 24, 2026
Avoid costly fair housing violations with expert tips on compliant real estate advertising, from listing language to social media targeting strategies.
By Louisiana REALTORS® April 24, 2026
Week seven of the 2026 Regular Session was one of the most active weeks yet for legislation affecting the real estate industry. Louisiana REALTORS® remained heavily engaged as lawmakers advanced bills dealing with property disclosures, appraiser liability, rent regulation, insurance, blight, redevelopment and other issues that directly affect real estate professionals, property owners and consumers across the state. One of the most important bills this week was HB 1166 by Rep. Kim Carver , which would require disclosures for vacant residential property. The bill was reported from House Commerce with amendments on a 14-0 vote and then amended on the House floor, ordered engrossed, and passed to third reading. Louisiana REALTORS® testified on the bill in committee and worked closely with the author to better posture the legislation. Amendments advanced by our team were accepted by the author, helping improve the bill while preserving a practical disclosure framework that increases transparency without creating unnecessary confusion in the transaction process. Another closely watched issue this week was consumer-fee disclosure legislation. HB 617 by Rep. Mandie Landry moved this week, advancing from House Commerce and then the House floor, while HB 580 , another hidden-fee disclosure bill touching real estate transactions, remains pending. Louisiana REALTORS® is opposed to these measures in their current form to the extent they apply to real estate professionals because they are not well-tailored to the realities of real estate transactions, where many costs are negotiated, variable or controlled by third parties. Louisiana REALTORS® testified in opposition to the bills we oppose and is actively working with the author to better posture the legislation and remove real estate professionals from its scope altogether. On HB 472 by Rep. Alonzo Knox , the rent stabilization bill, the author is expected to try to bring the measure back before the committee next week with amendments. Even so, Louisiana REALTORS® remain opposed to the bill on principle. Price gouging is already illegal under existing law, and government-imposed rent regulation is not the right answer to housing affordability challenges. Louisiana REALTORS® testified in opposition to the bill and continues to oppose the measure because policies like this risk discouraging investment, reducing housing supply, and creating further market distortions rather than solving the underlying problem. HB 468 by Rep. Troy Hebert , which regulates the wholesale of residential real property, remains pending in the Senate Commerce Committee and continues to be an important bill for the industry. Likewise, HB 1027 by Rep. Troy Hebert , dealing with appraiser liability, had a strong week, passing the House 90-0 and moving to the Senate. Both measures are significant because they promote greater clarity, consumer protection and confidence in the real estate marketplace. Blight and redevelopment issues also remained active. HB 284 by Rep. John Wyble , which would allow certain local governments to expropriate blighted property through a declaration-of-taking process, remains subject to call and continues to raise serious concerns about private property rights. By contrast, HB 214 and HB 217 by Rep. Chance Henry , which create tax incentives for the rehabilitation of blighted property, represent a more constructive redevelopment approach by encouraging reinvestment rather than expanding government taking authority. Insurance legislation also remained a major focus this week, with multiple bills heard that could affect homeownership costs, market stability and post-storm recovery. Measures dealing with Louisiana Citizens assessments, pre-suit insurance claim review, the Fortified Homes Program and insurance market transparency all carry real implications for affordability and transaction viability. In Louisiana, insurance remains one of the most important issues affecting the real estate market, and Louisiana REALTORS® continues to closely track that legislation. Taken together, week seven showed that Louisiana REALTORS® remains actively engaged where it matters most: supporting practical transaction standards, protecting private property rights, testifying for and against legislation when necessary, pushing back on unworkable regulation and rent-control-style policies, and advancing policies that strengthen housing opportunity and market stability across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
By Louisiana REALTORS® April 23, 2026
NAR is pleased to share the latest consumer guide helping buyers navigate shifting interest rates. The one-page guide covers how lenders set rates, the impact of small shifts on monthly payments and strategies to get the lowest rate possible. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Navigating Interest Rate Shifts Financing a Renovation When You Buy Staging Your House for a Sale Spotting Deepfake Scams in Real Estate Are You Ready to Invest in Real Estate? Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for the next consumer guide, which looks at how solar installations may impact home sales transactions.
Show More