Consumer Reports Urges Homeowners Insurers to Adopt Baseline Protections Amid Market Challenges

Consumer Reports (CR) has submitted a petition signed by 44,532 individuals urging 28 leading homeowners insurance companies to enhance consumer protections amid industry challenges. The petition addresses rising premiums, abrupt policy cancellations, and limited coverage options faced by many homeowners across the U.S. Key insurers targeted include State Farm, Allstate, USAA, Liberty Mutual, and Farmers. CR's Homeowners Insurance Bill of Rights, developed with input from industry professionals, academia, and policyholders, outlines nine baseline protections focused on fairness and transparency. CR highlights several factors destabilizing the homeowners insurance market, including extreme weather events, inflation, and increased construction costs, leading to premium hikes and shrinking coverage availability. From surveys conducted in 2024-2025 involving nearly 24,000 policyholders, CR found over half experienced premium increases, with some premiums doubling or tripling, and 9% faced coverage cancellations. Thousands of consumer narratives further illustrate abrupt policy modifications and difficulty accessing replacement coverage. While some states have implemented robust consumer safeguards, CR points to national inconsistency that leaves millions at risk. The group recently testified before the New York State Senate, advocating for stronger regulatory oversight and enactment of transparent, equitable insurance policies. CR intends to continue collaboration with insurers and policymakers to establish these baseline protections as industry standards nationwide. Implementing CR's proposed measures could enhance trust between insurers and policyholders, mitigate market instability, and provide uniform protection regardless of geographic location. The petition represents significant consumer demand for a more stable, transparent homeowners insurance marketplace. CR underscores the importance of regulatory engagement to solidify these protections into law, promoting long-term resilience for U.S. homeowners.