SB 162 creates a new chapter in Indiana law prohibiting landlords from selling or offering to sell insurance to tenants, including insurance in a rental agreement, or bundling insurance with a rental agreement. The bill applies to rental contracts entered into or renewed after June 30, 2025.
The measure gives tenants a private right of action against a landlord who violates these restrictions. A prevailing tenant may recover compensatory damages or liquidated damages of $1,000, plus court costs and reasonable attorney’s fees. The bill also makes a violation a deceptive act under Indiana’s deceptive consumer practices law, allowing the attorney general to pursue enforcement as well.
Impact
The bill would add a new Chapter 13 to IC 32-31-13, directly regulating landlord conduct in the rental housing market and limiting the sale or packaging of insurance in connection with leases. It expands potential liability for landlords by creating both tenant lawsuits and attorney general enforcement under IC 24-5-0.5, while also providing statutory damages and fee-shifting for successful tenants.
Sentiment
Based on the bill text and available context, the bill appears to be framed as a consumer-protection measure aimed at preventing deceptive or coercive rental practices. There is no recorded committee testimony or vote history in the provided materials, so no clear support or opposition can be identified from the discussion record. The caption and enforcement provisions suggest a policy focus on tenant protection and transparency.
Contention
The main policy issue is whether landlords should be barred from offering insurance products alongside leases, which could be viewed as protecting tenants from pressure or hidden costs but also as restricting a potential convenience or ancillary service. Another point of contention is enforcement: the bill exposes landlords to private lawsuits, statutory damages, attorney’s fees, and attorney general action, which may be seen as strong deterrence or as overly punitive depending on perspective. No specific individuals or groups are identified in the provided record as taking positions.