Consumer Reports Publishes A ‘Homeowners Insurance Bill of Rights’

Consumer Reports (CR), the advocacy arm of Consumers Union, has released a formal “Homeowners Insurance Bill of Rights”. The move, announced in an October 22, 2025, press release, lays out a nine-point blueprint for what CR deems “basic, common-sense protections”.

CR states its goal is to work with the insurance industry to adopt these standards and to “advocate for policymakers to codify them in laws and regulations”.

Why CR is Acting Now

CR’s rationale for publishing the Bill of Rights is the “destabilization” of the home insurance market. They cite the familiar pressures facing the industry: the “increasing frequency of extreme weather events,” and the “rising cost of repairs and building materials,” combined with inflation.

From CR’s perspective, the market’s response to these pressures has created a crisis for policyholders, who face “skyrocketing premium prices” and widespread nonrenewals, with some carriers “pulling out of regional markets altogether”.

The report goes a step further, accusing some insurers of “taking advantage of this crisis to weaken consumer protections and undermine insurance regulation”. The Bill of Rights is CR’s proposed solution, aimed at increasing transparency, consumer education, and “strengthened consumer protections” at every stage of the policy lifecycle.

Summary of the Proposed Bill of Rights

Of the nine specific rights CR is advocating for, several of these proposals would significantly alter common industry practices in underwriting, policy management, and claims.

CR notes that in “almost every case, versions of CR’s nine proposed rights have already been established by law in at least one or more U.S. states,” which they will likely use as justification for nationwide adoption.

The proposed rights are:

A clear, plain-language explanation of what is—and isn’t—covered. CR is calling for a “standardized plain-language summary” provided before purchase or renewal.
Know which risk factors are used to determine eligibility and set rates. This would require insurers to disclose the main factors (e.g., location, disaster risk scores) and “any data or images used” in the underwriting process.
Fair access to coverage based on property risk, not homeowner’s finances. This is a direct challenge to credit-based insurance scoring, stating homeowners should be evaluated on the “actual condition and risk of their property, not their income, credit history, credit score, neighborhood demographics, and other non-risk factors”.
Receive written notice well in advance of major changes. This right calls for a minimum 60-day written notice for any nonrenewal, cancellation, or premium increase of 10% or more, with a “clear justification”. It also includes the right for a policyholder to appeal and have coverage reinstated if they correct the cited issue.
Benefit from incentives to “harden” your home. Insurers should provide “clear, advance notice” of upgrades that would lower premiums and “guarantee” the discount if the improvements are made.
Insurance security during and after declared States of Emergency. This is one of the most significant proposals. It calls for a moratorium on cancellations or nonrenewals for at least “one year” (two years for total-loss homes) in zones impacted by an emergency declaration. It also includes a 60-day grace period on premium payments.
Face no penalties for inquiries and unpaid claims. This proposal targets the practice of penalizing a customer (with premium hikes or nonrenewal) for “pursuing information about their policy” or for a claim that did not result in a payout.
Prompt, full, and fair payment on a claim. This provision seeks to mandate that “simple claims” be investigated and paid within 30 days of submission. It also calls for insurers to “publicly report their average claims response times”.
Immediate and adequate financial support for emergency housing and essentials. This right calls for the “prompt payment of emergency financial assistance” (e.g., ALE) after a declared disaster without requiring an itemized list of lost assets.

Who Contributed

Consumer Reports credits the Bill of Rights as resulting from the expertise of its partners and collaborators, including United Policyholders, the Consumer Federation of America, Dr. Steven Koller of the Harvard Joint Center for Housing Studies, and over 56,000 consumers who shared their input and stories.