Illinois Homeowners Face 50% Insurance Premium Increases

A recent report from the Consumer Federation of America highlights the significant increase in homeowners insurance premiums in Illinois, which have risen by an average of 50% over the past three years, making Illinois homeowners among the most affected in the nation. This increase is notably higher than the national average of 24%. The report draws attention to the surplus in the U.S. property and casualty insurance industry, which stands at $1.1 trillion, raising questions about the justification for such high premium increases.

Douglas Heller, the CFA director of Insurance, argues that while insurers may seek higher rates, there should be greater regulatory scrutiny and transparency to ensure consumers are not being unfairly charged. Abe Scarr from the Illinois Public Interest Research Group points out that Illinois regulators lack the authority to reject excessive rate hikes, leaving homeowners vulnerable to substantial premium increases without adequate protection or oversight.

CFA advocates for legislative reforms requiring insurance companies to publicly disclose their transactions with consumers, similar to mortgage data. The report warns that the issues surrounding homeowners insurance in Illinois may worsen if proactive measures are not taken by policymakers to create a fair and stable insurance market.