The bill amends Section 27-8-11 of the General Laws concerning regulations on the cancellation and renewal of homeowners insurance. It requires that, starting September 1, 2025, any increase of more than 20% in the cost of homeowners insurance renewal shall require insurers to provide policyholders with two months' advance notice. Additionally, if an insurer is failing to renew a homeowners policy, they must deliver a notice of non-renewal to the policyholder no less than two months before the policy expiration.

The bill also establishes a cap on annual homeowners policy renewal premium increases, limiting them to a maximum of 5% for policyholders who are 65 years of age or older and have a household income equal to or less than the Rhode Island income limits for low- and moderate-income households as published by RI Housing. Any violation of these provisions will constitute a deceptive trade practice, punishable by a fine not to exceed $1,000. The act will take effect upon passage.

Statutes affected:
15: 27-8-11