Consumer Reports Advocates for Homeowners Insurance Bill of Rights Amid Rising Premiums

Consumer Reports (CR) has submitted a petition signed by 44,532 individuals to the leaders of 28 major U.S. homeowners insurance companies, including State Farm, Allstate, USAA, Liberty Mutual, and Farmers. The petition advocates for the adoption of a Homeowners Insurance Bill of Rights aimed at increasing consumer protections and enhancing transparency in response to rising premiums, unexpected policy cancellations, and decreasing access to coverage. This Bill of Rights includes nine foundational protections developed with input from insurance experts, academics, and homeowners nationwide. The homeowners insurance market is currently challenged by multiple factors such as extreme weather events, inflation, and increased construction costs. These pressures have destabilized the market, resulting in significant premium increases, abrupt policy non-renewals, and limited coverage options. Consumer Reports' 2024-2025 survey of nearly 24,000 policyholders indicates that over half experienced premium hikes in the past year, with some premiums doubling or tripling, and 9% faced dropped coverage. Many reported difficulties with unexpected costs and finding alternative coverage. The proposed Homeowners Insurance Bill of Rights outlines key consumer protections including transparent explanations of coverage terms, clear disclosure of risk factors influencing eligibility and premiums, equitable access to coverage based on property risk rather than financial status, and adequate notice before cancellations or premium hikes. Additional provisions call for incentives for homeowners who improve property resilience, protections following declared States of Emergency, fair claims handling processes, and immediate financial support for disaster-related housing needs. Consumer Reports emphasizes the inconsistent regulatory landscape across states, noting that while some states provide strong protections, many homeowners remain vulnerable due to variability in consumer safeguards. CR has actively engaged with industry representatives and testified before legislative bodies, such as a recent New York State Senate hearing, urging regulators to enforce greater oversight and standardize protections nationwide. The CR initiative seeks to promote industry adoption of these standards and collaborates with policymakers to enshrine these consumer protections into law, aiming for uniform treatment of homeowners regardless of their state of residence. This effort responds to market instability and aims to restore consumer trust, improve policyholder retention, and foster long-term stability in the homeowners insurance market.