Consumer Reports Petition Seeks Enhanced Homeowners Insurance Protections Amid Rising Premiums

Homeowners in the Mountain West region are part of a larger national movement involving over 44,000 individuals petitioning for enhanced transparency and consumer protections from major homeowners insurance companies. The initiative, led by Consumer Reports, requests industry leaders to implement a "Homeowners Insurance Bill of Rights" that outlines nine key protections aimed at improving fairness throughout the insurance lifecycle, from policy purchasing to post-disaster claim handling. The impetus for the petition is driven by a significant rise in home insurance premiums, with a 24% increase nationally from 2021 to 2024, attributed to factors such as inflation, extreme weather events, and escalating home construction costs. Consumer Reports critiques insurance companies for potentially exploiting these market conditions to reduce regulatory oversight and weaken consumer safeguards. Key reforms proposed include mandatory disclosure of risk assessment criteria used by insurers and simplifying policy language to prevent unexpected coverage gaps. These measures seek to empower homeowners by clarifying policy terms and ensuring equitable treatment in claims processing, especially after catastrophic loss events. Responses from industry groups such as the National Association of Mutual Insurance Companies and the American Property Casualty Insurance Association emphasize the role of existing state regulations and deny that industry practices are responsible for increased costs. They caution against broad regulatory mandates that may not reflect the complexities of insurance markets or diverse regional risk profiles. Legislative activity across Mountain West states has seen varied success, with some bills aimed at enhancing transparency, defining high-risk zones, recognizing wildfire mitigation efforts, and increasing competitive options in the insurance market. However, only a few measures have been enacted, including a Nevada law granting insurers more flexibility possibly affecting wildfire coverage inclusivity. Consumer Reports advocates that while state-level policy reform is ongoing, voluntary adoption of the proposed consumer protections by insurers could accelerate improvements. This collective action highlights ongoing tensions between consumer advocacy groups and insurers within a changing risk and regulatory environment affecting homeowners insurance in the Mountain West and nationwide.