Protecting Illinois Homeowners and Drivers: New Bills to Safeguard Against Unfair Insurance Rate Hikes
Illinois Governor JB Pritzker is set to sign two bills designed to safeguard homeowners and drivers in the state from unfair insurance rate hikes. The first bill, House Bill 4273, focuses on homeowners insurance and mandates insurers to give a 60-day notice before raising rates by more than 10%. It also prohibits "cost shifting" and ensures that homeowners insurance rates are based solely on Illinois claims data. The second bill, Senate Bill 714, targets auto insurance and grants the Illinois Department of Insurance new powers to review rate filings, block excessive or discriminatory increases, and require refunds for overcharged drivers. Additionally, it mandates a 30-day notice before raising a policyholder's renewal rate by more than 10%.
If these bills are signed into law, they will come into effect on July 1, 2027.