Requires homeowner’s insurance providers to provide two months’ notice before increasing any policy more that 20%. Also caps rate increases for policy holders that are 65 years of age or older and meet certain income limits.
H5333 amends Rhode Island’s casualty insurance laws to add new notice and renewal requirements for certain property and casualty policies, especially homeowners insurance. The bill directs the insurance commissioner to promulgate regulations requiring insurers to notify policyholders when a renewal includes coverage reductions, eliminated coverages, or increased deductibles that were not requested by the insured. The notice must be clearly labeled “NOTICE OF REDUCTION IN COVERAGE” and delivered in a specified way, including by separate mailing, prominent envelope labeling, placement on the first page of the renewal package, or email notice with the renewal documents attached.
The bill also adds direct statutory requirements for homeowners policies beginning September 1, 2025. If a renewal premium increases by more than 20%, the insurer must give the policyholder at least two months’ advance notice. If the insurer is not renewing a homeowners policy, it must also provide at least two months’ notice. In addition, for policyholders age 65 or older whose household income is at or below Rhode Island’s low- and moderate-income limits, annual homeowners renewal premium increases would be capped at 5%.
The bill further states that these coverage-change rules apply to personal motor vehicle insurance, homeowners insurance, and residential fire insurance, and that certain coverage changes must be approved by the insurance division for specified non-business insurance lines. It also includes liability protections for the commissioner, insurers, agents, and others who provide or relay cancellation/nonrenewal information, limiting lawsuits based on those notices or statements.
A violation of the new requirements would be treated as a deceptive trade practice under Rhode Island law and could result in a civil fine of up to $1,000 per violation. The act would take effect upon passage.
H5333 would amend Chapter 27-8 of the Rhode Island General Laws governing casualty insurance cancellation and renewal, adding new consumer-notice obligations and a premium-increase cap for certain homeowners. It would create enforceable standards for renewal disclosures, nonrenewal timing, and coverage-reduction notices, while also tying violations to the state’s deceptive trade practices law. The bill would directly affect homeowners insurers, and indirectly affect policyholders—especially older, lower-income homeowners—by limiting sharp renewal increases and requiring earlier notice of significant changes.
Based on the bill text and caption, the measure appears consumer-protective and aimed at improving transparency and affordability in homeowners insurance. The available record contains no committee transcript or vote history, so there is no documented debate or recorded opposition in the provided materials. The overall framing suggests support for policyholders facing premium spikes or reduced coverage at renewal.
The main potential points of contention are the 20% notice threshold, the 5% cap for older low- and moderate-income homeowners, and the administrative burden on insurers to provide detailed, prominently labeled renewal notices. Insurers may view the premium cap and advance-notice requirements as restrictive or difficult to implement, while consumer advocates would likely support them as protections against unexpected cost increases and coverage erosion. The bill also raises questions about how the income-based cap would be verified and administered through the insurance market.