Homeowners Insurance Market Faces Rising Premiums; Consumer Protections Proposed

The U.S. homeowners insurance market is experiencing significant instability, driven by extreme weather events and increasing construction costs. This has led to sharp rises in premiums, delayed claims processing, and difficulty in obtaining coverage. Consumer Reports' 2024-2025 survey indicates more than half of homeowners faced premium hikes in the preceding year, with some seeing costs double or triple. These challenges have forced many homeowners to underinsure or forgo insurance entirely. Homeowners insurance regulation varies by state, resulting in uneven consumer protections. Consumer Reports, alongside industry and consumer groups, has proposed a Homeowners Insurance Bill of Rights to standardize and enhance policyholder rights. This initiative calls for greater transparency on pricing factors, information disclosure during policy shopping and renewal, adequate notification requirements before policy changes or cancellations, and timely claim payments. Consumer Reports advocates for this bill to foster fairness and transparency in the market, encouraging policyholders and industry stakeholders to support its adoption. Such measures aim to address the market's current volatility and improve consumer confidence in homeowners insurance products. In a related consumer protection effort, Consumer Reports highlights regulatory gaps in the personal care products sector, noting that U.S. regulations permit widespread use of untested ingredients, some toxicologically concerning. Consumer Reports has prompted regulatory scrutiny and legislative measures, including New York's proposed Beauty Justice Act and federal Safer Beauty Bill Package, targeting harmful substances and improving ingredient transparency. These efforts align with broader public health activities, such as supporting legislation to remove ultraprocessed foods linked to chronic diseases from school nutrition programs, exemplified by California's legislation banning the most harmful ultraprocessed foods from public schools by 2035. Overall, the report underscores ongoing consumer challenges in insurance and product safety sectors, emphasizing regulatory reform and consumer rights enhancement as key areas for industry, policymakers, and regulators.