Consumer Reports Pushes Homeowners Insurance Bill of Rights Amid Market Challenges

Consumer Reports (CR) delivered a petition with 44,532 signatures to the CEOs of 28 major U.S. homeowners insurance companies, including State Farm, Allstate, USAA, Liberty Mutual, and Farmers, urging the adoption of a Homeowners Insurance Bill of Rights. This set of nine baseline protections aims to enhance fairness, transparency, and consumer protections amid escalating premiums, unexpected policy cancellations, and reduced access to coverage. CR cites market pressures such as extreme weather, inflation, and rising construction costs as key drivers destabilizing the homeowners insurance landscape, leading to significant premium increases and non-renewals. A recent CR survey found more than half of policyholders experienced premium hikes in the past year, with some facing costs double or triple their previous payments, while 9% had their coverage dropped. CR advocates for standardized consumer protections across all states, highlighting inconsistencies in current regulatory frameworks that leave millions of homeowners vulnerable. Recently, CR testified at a New York State Senate hearing, emphasizing the need for stronger regulatory oversight, transparency, and fair market practices. The petition encourages insurers to adopt measures including clearer communication about coverage, timely notice of cancellations, and equitable claims handling practices. CR is also collaborating with insurers and policy makers to formalize these protections within regulatory frameworks to stabilize the market and improve policyholder trust nationwide.