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Bill

S 6356

Prohibits increases in rates of homeowners' insurance in excess of twenty-five percent per year

2025 Regular Session Introduced by John Liu

Bill S 6356 caps homeowners' insurance rate increases at 25% annually, protecting homeowners from sudden premium hikes and ensuring financial stability.

REFERRED TO INSURANCE
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WeVote Research Nonpartisan
Bill Summary · S 6356

Summary of Bill S 6356

Bill Overview

  • Bill Number: S 6356
  • Title: Prohibits increases in rates of homeowners' insurance in excess of twenty-five percent per year
  • Status: Referred to Insurance Committee
  • Introduced On: March 11, 2025
  • Classification: Legislative Bill

Purpose and Intent

The primary purpose of Bill S 6356 is to protect homeowners from excessive increases in their homeowners' insurance premiums. By capping annual rate increases at twenty-five percent, the bill aims to provide financial stability and predictability for homeowners, particularly in times of economic uncertainty or natural disasters.

Key Provisions

  • Rate Cap: The bill specifically prohibits homeowners' insurance companies from increasing their rates by more than twenty-five percent in any given year.
  • Implementation: The cap applies to all homeowners' insurance policies issued within the jurisdiction of the bill, ensuring uniform protection across the state.

Affected Parties

  • Homeowners: The primary beneficiaries of this legislation will be homeowners who may face sudden and significant increases in their insurance premiums.
  • Insurance Companies: Insurers will need to adjust their pricing strategies to comply with the new rate cap, which may affect their revenue and underwriting practices.

Procedural Aspects

  • Current Status: As of March 11, 2025, the bill has been referred to the Insurance Committee for further consideration.
  • Related Legislation:
    • S 8481: A related bill from the prior legislative session that may address similar issues.
    • A 4188: A companion bill in the Assembly that aligns with the objectives of S 6356.

Conclusion

Bill S 6356 seeks to provide essential protections for homeowners against steep increases in insurance rates, fostering a more stable housing market and ensuring that homeowners are not disproportionately burdened by rising insurance costs. The bill is currently under review by the Insurance Committee, and its progress will be closely monitored by stakeholders in the insurance and housing sectors.

Compiled from official sources — confirm details with the bill’s official record.

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