Louisiana Department of Public Safety Office of Motor Vehicles

Louisiana Department of Public Safety

Office of Motor Vehicles

Policy 76.00 Water Damaged Vehicle

Section: 4. Motor Vehicle Registration Requirements

Effective Date: 01/01/1996

Revised Date: 06/06/2018

Authority:

R.S. 32:702 (4, 12,13,16)

R.S. 32:707 (G) and (O)

R.S. 32:781 (16)

R.S. 32:789

LAC 55:III.397

To view Louisiana Statutes: http://www.legis.state.la.us/

General:

 Water Damage Branded Title

o A vehicle is required to be issued a title branded "water damage" when it sustains

water damage to the power train, computer, or electrical system, but does not meet

the criteria for a salvage title or certificate of destruction. Any amount water damage

to the power train, computer, or electrical system will require the title to be branded

as water damaged.

o Certain circumstances may lead to a total loss claim not being paid, such that the

insurance policy did not cover such a loss or the vehicle did not meet the 75% total

loss threshold.

o Any person selling, transferring, or conveying any new or used vehicle and seeking to

title a vehicle is Louisiana is required to apply for for a water branded title when the

above circumstances exist (including but not limited to new car dealers, used car

dealers, and individuals).

o A dealer is required to submit a disclosure of water damage by licensed dealer form

with the title application.

o All other persons are required to submit a salvage-reconstructed-water damaged-hail

damaged form with the title application.

 Salvage/Water Damaged Title

o If a vehicle sustains water damage that results from an event other than a flood

declared a gubernatorially disaster or emergency and is deemed a “total loss” as part

of an insurance settlement, a salvage/water damaged title will be required to issued

to any person seeking to title such a vehicle in Louisiana.

o "Total loss" means a motor vehicle which has sustained damages equivalent to

seventy-five percent or more of the market value as determined by the most current

National Automobile Dealers Association handbook

o Any insurance company, its authorized agent or vehicle owner is required to submit a

salvage-reconstructed-water damaged-hail damaged form with the application for a

salvage/water damaged branded title.

Requirements:

 No Louisiana new or used motor vehicle dealer, nor any person or entity selling a vehicle in

Louisiana, shall sell, transfer, or convey any motor vehicle to any person without notifying

the buyer or receiver of the vehicle in writing of the extent of any water damage from

flooding which occurred to the vehicle prior to the transaction. A "Disclosure of Water

Damage" statement (DPSMV1637) signed by both the transferor who is not a new or used

dealer and transferee must be submitted as a part of the supporting documents surrendered

for issuance of title.

 A "Disclosure of Vehicle Condition for Vehicles Sold/Transferred/Conveyed by Licensed

Dealers" signed by both the transferor who is a new or used dealer and transferee must be

submitted as part of supporting documents surrendered for issuance of title. Any insurance

company, owner, or dealer, applying for a water damage branded title on a motor vehicle

which does not meet the criteria for a salvage title or certificate of destruction is required to

provide documentation of the value of the vehicle, the damages sustained, the circumstance

that caused the damage, and the amount of the costs of the repairs to the vehicle which

establish the vehicles eligibility for the water damaged brand.

 No out-of-state new or used motor vehicle dealer, nor any out-of-state resident person or

entity, selling a water damaged vehicle to a Louisiana resident, will be required to provide a

"water damage disclosure" form, provided the supporting documents clearly indicate "water

damaged" to a prospective buyer.

 If the vehicle was damaged by water and the supporting documents indicate the same, the

Louisiana title must be branded "Water Damaged". Out-of-state titles reflecting water

damage must also be shown on any subsequent title issued.

 If disclosure of water damage is not made at the time the vehicle is transferred, the buyer or

receiver of the vehicle may file suit to rescind the transaction within one year of the date of

the transaction.

Related Policies:

Section 4, Policy 42.00 Vehicle Certificate Of Title Law (Salvage Vehicles)

Section 4, Policy 42.01 Rebuilt Salvaged Vehicles

Section 4, Policy 42.02 Out-Of-State Branded Titles

Section 4, Policy 42.03 Insurance Settlements When Damage Is Less Than 75% Of The N.A.D.A.

Book Retail Value

Section 4, Policy 42.04 Salvage Retention

Section 4, Policy 42.05 Hail-Damaged Vehicles

Section 4, Policy 43.00 Supporting Documents Indicate Vehicle May Be Total Loss

Section 4, Policy 97.00 Canceled Rescinded Sales Of Motor Vehicles