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 twenty percent (20%) in the cost of homeowners insurance renewal must be communicated to the policyholder with two months' advance notice. Additionally, if an insurer decides not to renew a homeowners policy, they must provide notice to the policyholder at least 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 five percent (5%) for policyholders who are sixty-five (65) years of age or older and have a household income that is 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 be considered a deceptive trade practice, punishable by a fine not to exceed one thousand dollars ($1,000). The act will take effect upon passage.

Statutes affected:
5333: 27-8-11