BILL NUMBER: S6356
SPONSOR: LIU
 
TITLE OF BILL:
An act to amend the insurance law, in relation to prohibiting increases
in rates of homeowners' insurance in excess of twenty-five percent per
year
 
PURPOSE:
This legislation will amend the insurance law prohibiting substantial
increases in the rates of homeowners' insurance in excess of twenty-five
percent per year.
 
SUMMARY OF PROVISIONS:
Section 1 adds a new section 2351-a to the insurance law which stipu-
lates that no insurer shall increase the rate of homeowners' insurance
more than twenty-five percent of the same policy from one year prior
unless agreed to by the policyholder policy prior to being issued,
renewed, modified, altered, or amended.
Section 2 sets the effective date.
 
JUSTIFICATION:
The escalating rates of homeowners' insurance have posed a severe finan-
cial burden on individuals and families across the state. Ensuring that
insurance premiums remain stable and accessible to those who rely on it
to safeguard their homes and belongings is very important. Steep and
unpredictable hikes often destabilize the market, creating uncertainty
for both homeowners and insurance providers. Establishing a reasonable
limit fosters predictability and allows homeowners to plan their budgets
more effectively.
 
LEGISLATIVE HISTORY:
2024: Referred to Insurance
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law and shall apply to all policies issued, renewed, modified,
altered or amended on or after such effective date.