HASTINGS LANDMARK INSURANCE REFORM SIGNED INTO LAW

The following information was released by the Illinois Senate Democrats:

Capping off years of advocacy and negotiations, State Senator Michael E. Hastings championed a law that will protect Illinois homeowners from unfair rate hikes similar to those endured in the last few years.

"For too long Illinoisans have been hit with rate increases that far outpace inflation and wage growth," said Hastings (D-Frankfort). "From just 2021 to 2024, homeowners insurance costs in Illinois surged by nearly 50 percent, adding almost $1,000 a year to a typical family's expenses."

House Bill 4273 will prohibit a company selling homeowners insurance from increasing premiums by more than 10% without first notifying the consumer 60 days prior. This will give consumers the necessary time to shop around and find a better rate. Most importantly, the law will prohibit homeowners insurance premiums from being excessive, inadequate or unfairly discriminatory. New standards implemented from the law will be enforced by the Illinois Department of Insurance, with set rules for hearings on newly filed rates.

The law will also ban cost shifting, a practice where losses or high-claim payouts in other states are shifted unfairly onto Illinois homeowners.

Hastings heard from residents who were blindsided last year by a 27% rate increase. Homeowners were left scrambling deciding how they would take on such an increase.

"Major carriers have imposed double-digit rate hikes, leaving many hard working families struggling to afford the very insurance meant to protect their most valuable asset," said Hastings. "These are real families being forced to choose between paying for their insurance premium or for groceries at the store."

House Bill 4273 was signed into law Tuesday and takes effect July 1, 2027.