SPRINGFIELD — State Senator Willie Preston supported legislation to protect Illinois homeowners from unfair rate hikes similar to those endured in the last few years, improving affordability for residents.

“Families across our communities are already stretched thin trying to keep up with groceries, gas, mortgages and everything else going up around them,” said Preston (D-Chicago). “Insurance companies should not be able to hit people with massive rate hikes without warning or accountability.”

House Bill 4273 would prohibit a company selling homeowners insurance from increasing premiums by more than 10% without notifying the consumer 60 days prior. This would give consumers the necessary time to shop around and find a better rate. More importantly, the bill would prohibit premiums for homeowners insurance from being excessive, inadequate or discriminatory. The Illinois Department of Insurance would oversee the measure, with set rules for hearings on newly filed rates.

The legislation would also ban cost shifting, a practice where losses or high-claim payouts in other states are shifted unfairly onto Illinois homeowners. Some residents were blindsided last year by a 27% rate increase, leaving them scrambling to decide how they would take it on.

“I hear from working families every day who are doing everything right and still struggling to keep up,” said Preston. “Illinois homeowners should not be paying the price for insurance company losses in other states. This legislation is about fairness, transparency and making sure people can afford to stay in their homes.”

House Bill 4273 passed the Senate Wednesday.