Hastings announces legislation to ensure fair homeowners insurance rates for Illinois families

State Senator Michael E. Hastings was joined at a press conference Wednesday by Senators Willie Preston, Paul Faraci, Meg Loughran Cappel, Christopher Belt, and Doris Turner to announce new legislation designed to protect homeowners from excessive insurance rate increases and ensure fairness, transparency, and accountability in Illinois homeowners’ insurance.

“When you open that renewal notice from your insurance company and your premium has gone up 30% or more, it is like stepping on a Lego at six in the morning — you didn’t do anything wrong, but you are definitely feeling it,” said Hastings (D-Frankfort).

“Across Illinois, homeowners’ insurance premiums have jumped 20% to 30% over the past year. Our neighbors are asking themselves, ‘What did I do to cause this? I did not file a claim. I did not move. I did not change a thing, but my rates still went up.’ And they are right to ask that question.”

For too long, Hastings said, the deck has been stacked in favor of large insurance companies that have turned inflation into a corporate get-rich scheme.

“Life is not always fair. You fix the leaky faucet and the dishwasher quits. Your kid throws up a game winner and it smashes the neighbor’s window,” said Hastings. “Life is not always fair, but that is exactly why we have to be.

The legislation would establish clear rules for homeowners insurance, including:

·         No surprise renewals: Companies would be required to give at least 60 days’ notice before nonrenewal and at least 60 days’ notice for premium increases over 10% or changes in coverage or deductibles.

·         Use of Illinois-specific data: Insurers would need to use credible state-specific loss experience when setting rates.

·         Fair, reasonable, and transparent rates: Rates would need to be actuarially sound and not excessive, inadequate or unfairly discriminatory.

·         Accountability and enforcement: The Department of Insurance would be able to review filings, issue orders and require rebates when rates are found unfair.

The legislation applies specifically to fire and extended coverage insurance for residential owner occupied properties, while excluding commercial, rental and unoccupied properties.

Hastings emphasized the legislation is about protecting families, not politics.

“People’s homes are their most valuable assets — the place where families build their lives and memories. While we cannot control every twist life throws at us, we can control fairness in insurance,” said Hastings. “This legislation guarantees homeowners a fair shake, with rates that are transparent, reasonable and based on real Illinois data. It is nice to talk about fairness and accountability, but it is time to deliver it. That is our commitment to families across the state.”

Insurance legislation will be heard during Wednesday’s Senate Executive Committee.