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.

Rhode Island Senate Bill: Homeowner's Insurance Premium Increase Notice Requirement

This bill would require homeowner's insurance companies to give policyholders at least two months' advance notice before raising their insurance premium by more than 20% at renewal time. Currently, insurers may not be required to provide this extended warning before significant rate increases take effect. The goal is to give homeowners more time to prepare financially or shop around for a better rate before a large premium hike kicks in.

The bill directly affects Rhode Island homeowners who carry homeowner's insurance policies. If a renewal premium increase exceeds the 20% threshold, the insurance company would be legally obligated to notify the customer at least 60 days ahead of time. This extra warning window could help families budget for higher costs or compare competing insurance options before their policy automatically renews at the higher rate.

If an insurance company fails to provide the required notice, the violation would be treated as a deceptive trade practice, and the company could face a fine of up to $1,000. This gives the state a legal tool to hold insurers accountable for not following the notice rules.

As of now, the bill has been introduced in the Rhode Island Senate and referred to the Senate Commerce Committee, which has recommended it be held for further study. A hearing is scheduled for March 31, 2026, meaning the bill is still in early stages and has not yet become law.