Requires homeowner’s insurance providers to provide two months’ notice before increasing any policy renewal premium more than 20% and a violation constitutes a deceptive trade practice punishable by a fine not to exceed $1,000.

Summary of Rhode Island House Bill on Homeowner's Insurance Premium Increases

This bill would require homeowner's insurance companies in Rhode Island to give policyholders at least two months' advance notice before raising their renewal premiums by more than 20%. The goal is to protect homeowners from being caught off guard by large, sudden increases in their insurance costs, giving them time to shop around for other coverage or prepare financially for the higher expense.

If an insurance company fails to provide this two-month notice before imposing a premium increase of more than 20%, the violation would be treated as a deceptive trade practice under Rhode Island law. Companies found in violation could face a fine of up to $1,000 per offense. This adds an enforcement mechanism to ensure insurers take the notice requirement seriously.

The bill primarily affects Rhode Island homeowners who carry homeowner's insurance policies and the insurance companies that provide that coverage. Homeowners would benefit from having more time and transparency when facing significant premium hikes. Insurance providers would need to adjust their practices to ensure they communicate large rate increases well in advance of the renewal date.

The bill was introduced in the Rhode Island House of Representatives and referred to the House Corporations Committee. The committee has recommended holding the measure for further study, with a hearing or consideration scheduled for February 2026. This means the bill is still in the early stages of the legislative process and has not yet been voted on by the full legislature.