The increasing frequency of extreme weather events,
combined with the rising cost of repairs and building
materials, has destabilized the home insurance market.
Homeowners increasingly face skyrocketing premium prices,
and many are losing coverage as insurance companies pull
out of regional markets altogether. At the same time, some
insurers are taking advantage of this crisis to weaken
consumer protections and undermine insurance regulation.
In response, Consumer Reports is advocating for increased
transparency, robust consumer education, and
strengthened consumer protections throughout the entire
lifecycle of a consumer’s relationship with their insurance
provider—from initially searching for and securing
insurance, through the coverage and renewal process, to
receiving insurance benefits following a disaster or claim.
These reforms will help consumers make informed decisions
about where they live, understand how best to protect their
most valuable asset, and hold insurance companies
accountable to their promises.
Homeowners insurance is largely regulated at the state level.
Some states have stricter regulations than others, which can
affect how rates are determined, the types of coverage
offered, and the availability of insurance in certain areas.
To bring greater fairness to the marketplace, CR believes
policyholders should be guaranteed the following basic,
common-sense rights across all states:
Home Insurance Policyholders
Should Have the Right to…
When shopping for insurance:
1 A clear, plain-language explanation of what is—
and isn’t—covered by your policy.
Homeowners are often surprised when they find out that
disasters like floods, earthquakes, or mold are not covered
by most basic home insurance policies, and require
additional or separate coverage. Every policyholder
should easily see what’s covered, what’s not, and what
must be purchased separately—before buying or
renewing, so that they can make informed decisions
before disaster strikes. Insurers should provide full policy
documents and a standardized plain-language summary
before purchase or renewal.
2 Know which risk factors are used to determine
eligibility and set rates.
Consumers deserve to know the main factors insurers used
to set their rates—such as location, property features, or
disaster riskscores—and to see any data or images used.
Insurance providers should also proactively inform
homeowners of any major risks that were identified on
their properties.
3 Fair access to coverage based on property risk, not
your finances.
Homeowners should be evaluated on the actual condition
and risk of their property, not their income, credit history,
credit score, neighborhood demographics, and other
non-risk factors. And if a homeowner believes they have
been discriminated against based on characteristics
protected under the Fair Housing Act, including race, color,
religion, sex, disability, familial status, or national origin,
they are allowed by federal law to seek remedy.
When covered by insurance:
4 Receive written notice and a full explanation well in
advance of major changes to your insurance policy.
At a time when affordable insurance is increasingly
difficult to find, homeowners should have enough time to
respond, contest errors, or find alternatives when their
insurer makes major policy changes. CR advocates that
policyholders in all states receive written notice at least 60
days before any nonrenewal, cancellation, coverage
reduction, or premium increase of 10% or more, with a
clear justification for the change. If an insurer uses drone
or satellite imagery, it should notify the homeowner, share
the images on request, and avoid relying on imagery more
than 180 days old unless revalidated. All policyholders
should have the right to appeal, and if they correct the
cited issue, the insurer should reinstate or renew coverage.
Urge home insurance companies to adopt this Bill of Rights.
Click here to sign the petition
1OCTOBER 21, 2025
WHERE WE STAND
5 Benefit from incentives to “harden” your home
against severe weather or wildfire risks.
When possible, homeowners should be given the
opportunity to make improvements to their home,
property, and surrounding community that reduce risks
from natural disasters– such as through installing fire-
resistant roofing, adding storm doors, or clearing
vegetation. Insurers should offer clear, advance notice of
all upgrades within the policyholder’s control that would
meaningfully lower the premium, and list the impact on
premiums or coverage if improvements are made.
6 Insurance security during and after declared
States of Emergency.
Homeowners in disaster-stricken areas are, in most states,
not protected from financial shocks from their insurers.
Within weeks of losing their homes, they may face non-
renewals, cancellations, or steep rate increases at the very
moment they most need stability and protection. CR calls
for insurers to offer policyholders in zones impacted by an
emergency declaration and surrounding impacted
communities at least one year of protection from
cancellations or non-renewals after a declared emergency,
two years for total-loss homes, and a 60-day grace period
on premium payments, regardless of whether they
suffered direct property loss.
When making an insurance claim:
7 Face no penalties for inquiries and unpaid claims.
Insurance providers should not discourage
policyholders from pursuing information about their policy,
or penalize a customer for a claim that did not result in a
payout. Policyholders should be able to inquire about
potential claims or damages without triggering penalties
such as premium hikes, non-renewals, or cancellations.
The policyholder should have the information necessary to
understand what factors could result in a cancellation,
rate hike, or other major change to their policy.
8 Prompt, full and fair payment on a claim.
Claims should be investigated quickly and paid within
a clear, reasonable deadline, without unnecessary delays
or denials. CR calls on insurers to guarantee that simple
claims will be investigated, accepted or denied, and any
resulting payment distributed within 30 days of claim
submission. If this timeline is not possible, insurers should
notify the claimant of the need for more information and
provide policyholders a reasonable timeline for the
investigation. If a claim is denied, insurers should provide a
detailed explanation for why the claim was not accepted,
and offer policyholders an opportunity and ample time to
appeal. We further ask that home insurers publicly report
their average claims response times, to demonstrate their
accountability to their policyholders.
9 Immediate and adequate financial support for
emergency housing and essentials.
After disasters, many homeowners face long delays in
getting reimbursed for essential living expenses, as
insurers often require extensive documentation and
itemization. CR calls on insurance providers to guarantee
prompt payment of emergency financial assistance to
policyholders after a declared disaster for immediate
living expenses such as emergency housing, without
requiring an itemized list of lost assets.
Conclusion
The challenges facing the homeowners insurance market,
driven by climate change and rising costs, necessitate a
stronger framework of consumer rights. The Homeowners
Insurance Bill of Rights aims to offer a path toward a
fairer, more accountable marketplace where policyholders
can make informed decisions, secure coverage that meets
their needs, and receive timely, clear communication
throughout their relationship with insurers. By adopting
these common-sense protections across all states,
insurance providers can increase stability and improve
trust, ensuring that homeowners are not left unprotected
in their time of greatest need.
This document would not have been possible without
CR’s partners and collaborators who lent their valuable
expertise to inform this Bill of Rights, including United
Policyholders, Consumer Federation of America, Dr. Steven
Koller of the Harvard Joint Center for Housing Studies, and
the over fifty six thousand consumers who shared their
input, advocated for pro-consumer home insurance
policies, and participated in feedback discussions to
inform the Homeowners Insurance Bill of Rights.
Urge home insurance companies to adopt this Bill of Rights.
https://action.consumerreports.org/nb-20251003-homeinsurancebillofrights
Don’t be like me, depending what on my insurance to do the right thing. It’s been 744 days since the storm damage. House is still torn up and @amfam is still in deny mode.
