CR calls for adoption of a “Homeowners Insurance Bill of Rights” to bring transparency, fairness, and stability to the marketplace
NEW YORK, NY—Consumer Reports (CR) testified yesterday before a joint public hearing of three New York State Senate Committees examining the rising cost and shrinking availability of homeowners insurance across the state.
Sara Enright, CR’s Senior Director of Safety and Sustainability, delivered testimony on behalf of the independent, nonprofit consumer organization—headquartered in Yonkers, New York—urging lawmakers to strengthen oversight of the residential insurance market and adopt policies that guarantee greater transparency, fairness, and stability for all New Yorkers.
“Homeowners across New York are facing skyrocketing premiums, shrinking coverage, and cancellations with little or no warning,” Enright said. “We commend this legislature’s joint investigation into the residential insurance market and urge you to pursue reforms that not only safeguard affordability but also advance transparency and fairness for all policyholders.”
On average, New York homeowners have faced premium increases of more than $1,000 since 2020—much higher than the national average—and nearly 500,000 households are now completely uninsured. CR heard from hundreds of New Yorkers confronting the insurance crisis, many describing steep, unexplained rate increases despite no claims, shrinking coverage, canceled policies with little or no notice, and barriers that make it nearly impossible to shop for better coverage.
The impacts also reach beyond homeowners to the broader housing market. Renters are seeing rising housing costs as property owners pass along higher insurance premiums, while aspiring homeowners are increasingly unable to secure mortgages as insurers retreat from areas labeled “too risky” because of flooding, wildfires, and other extreme weather hazards.
“These stories CR has heard reflect a pattern seen across New York and nationwide: steep, unexplained rate increases; opaque underwriting decisions; inadequate notice; and fear of losing affordable coverage even among responsible homeowners.” Enright said.
CR Introduces a Homeowners Insurance Bill of Rights
To address these systemic issues, CR urged lawmakers to advance the core principles of its Homeowners Insurance Bill of Rights, released last month and developed with input from insurance experts, academics, and homeowners across the country. More than 43,000 consumers have already signed CR’s petition urging major insurers to adopt these protections.
The Bill of Rights outlines nine fundamental consumer protections, including the rights to:
- A clear, plain-language explanation of what is and isn’t covered—before purchase or renewal.
- Know which risk factors are used to determine eligibility and set rates.
- Fair access to coverage based on property risk, not your finances.
- Adequate notice before cancellations, nonrenewals, or steep premium hikes.
- Meaningful incentives for homeowners who take steps to harden their homes.
- Protections against cancellations or non-renewals in the aftermath of declared States of Emergency.
- Freedom from penalties for inquiries or claims that result in no payout.
- Prompt, full, and fair claim payments, with accountability for delays.
- Immediate financial assistance for emergency housing and essential needs after a disaster, with limited paperwork.
“With greater transparency and accountability from the home insurance market, residents will be able to make more informed decisions about where they live, understand how best to protect their most valuable assets, and hold insurance companies accountable to their promises,” said Enright. “We are eager to work with this legislature and other stakeholders to translate CR’s Home Insurance Bill of Rights into enforceable law, positioning New York as a model of resilience and equity in a climate-stressed, inflationary market.”
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Media Contact: Emily Akpan, emily.akpan@consumer.org