More than 8,000 homeowners in the Mountain West are among the 44,532 nationwide to sign a new petition by the nonprofit Consumer Reports, asking for more protections and transparency from insurance companies.
The petition calls on the CEOs of the biggest insurers to adopt the nine protections in Consumer Reports’ new “Homeowners Insurance Bill of Rights.”
According to a report from earlier this year by the Consumer Federation of America, average insurance premiums rose 24% nationally between 2021 and 2024. Many factors are contributing to the trend, including extreme weather, inflation and rising construction costs.
Consumer Reports argues that insurers are “taking advantage of this crisis to weaken consumer protections and undermine insurance regulation.”
“Consumers are often left powerless to large insurance companies when facing increased premiums or when trying to make a claim after the total decimation of their home post disaster,” said Alexandra Grose, senior counsel for sustainability policy at Consumer Reports.
The petition labels the “Bill of Rights” protections as “basic standard of fairness,” spanning the process from shopping for insurance to filing claims after a disaster. Two of the reforms outlined in the report ask insurers to disclose the factors used to determine a home’s risk and to write policies in plainer language.
“Folks can be caught off guard when they realize certain perils are not covered by their policy,” said Grose.
In response to the petition, the National Association of Mutual Insurance Companies said increased costs are not being driven by industry practices and denied accusations of wrongdoing.
“The insurance industry is, and always has been, fair, transparent, and accountable,” the group said in a statement. “We welcome constructive dialogue, but one-size-fits-all proposals and simplistic rankings do not reflect the complexity of insurance markets or the diverse risks faced by homeowners.”
The American Property Casualty Insurance Association said it supports efforts to increase consumer education but noted insurance companies are already closely regulated by states.
“There are already robust consumer protection statutes and regulations in place across the country that address many elements of Consumer Reports' Bill of Rights, including claims handling practices, cancellation or non-renewal procedures, communication expectations, and transparency rules,” said David Snyder, vice president of international at APCIA, in a statement.
In the Mountain West, state legislatures considered over a dozen bills relating to homeowners insurance this year. Most efforts failed, but ones that passed aim to better define high-risk areas in Utah, require increased transparency in Montana and factor in wildfire mitigation efforts in Colorado. A new law in Nevada gives insurance companies more flexibility in hopes of boosting market competition. Local reporting found it could allow policies that exclude wildfire coverage.
Gross said Consumer Reports is advocating for policies at state legislatures but that getting insurance companies to voluntarily adopt its reforms would be the fastest way to enact change.
This story was produced by the Mountain West News Bureau, a collaboration between Boise State Public Radio, Wyoming Public Media, Nevada Public Radio, KUNR in Nevada, KUNC in Northern Colorado, KANW in New Mexico, Colorado Public Radio and KJZZ in Arizona as well as NPR, with support from affiliate newsrooms across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting and Eric and Wendy Schmidt.
