State Sen. Michael E. Hastings, D-Frankfort, is praising legislation that is intended to protect Illinois homeowners from unfair rate hikes

“There is no world where insurance companies should get away with 20% or more rate hikes without having to explain where those numbers are coming from,” Hastings said in a news release from his office.

House Bill 4273 would prohibit a company selling homeowners insurance from increasing premiums by more than 10% without first notifying the consumer 60 days prior.

This would give consumers the necessary time to shop around and find a better rate, according to the release.

“Most importantly, the bill would prohibit homeowners insurance premiums from being excessive, inadequate or unfairly discriminatory,” according to the release.

Hastings said he heard from residents who were blindsided last year by a 27% rate increase.

“It cannot be too much to ask that consumers are given the opportunity to plan ahead when a rate hike is on the way,” Hastings said. “This bill aligns Illinois with 48 other states, not by squeezing the insurance industry, but simply by giving the Department of Insurance the ability to analyze the numbers and deny rates that have no basis in reality.”

The legislation would also ban cost shifting, a practice where losses or high-claim payouts in other states are shifted unfairly onto Illinois homeowners, according to the release.

The measure would be overseen by the Illinois Department of Insurance, with set rules for hearings on newly fled rates.

House Bill 4273 passed the full Senate on May 13.