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Illinois limits fire insurance premium hikes above 10%
The law also introduces a stricter rate-review process, with filings deemed compliant if regulators do not respond within 60 days of a complete submission.
Illinois enacted House Bill 4273, a new rule for home insurers that requires carriers to provide at least 60 days' notice before renewing covered fire policies with renewal premium increases above 10%. The requirement takes effect for notices sent on or after July 1, 2027, and it applies by mail or electronically. Changes requested by the policyholder do not count toward the notice trigger.
The law also extends the 60-day notice standard to changes in deductibles or coverage across an entire line of business, requiring insurers to inform named insureds ahead of the renewal or anniversary date.
Beyond notice, the measure reshapes how fire and extended coverage rates are set. Fire and extended coverage rates cannot be excessive, inadequate, or unfairly discriminatory, and a rate is considered inadequate if it endangers an insurer's solvency.
Illinois' Department of Insurance is given 60 days from a complete filing to object to a rates submission, and if it misses the deadline the filing is deemed compliant, which the law describes as neither waivable nor subject to extension. If regulators find a filing violates the rules, the final order can set when the filing stops working and spell out any rebates owed to affected consumers, and insurers cannot rely on out-of-state loss experience when credible Illinois data is available and statistically reliable, according to Insurance Business.