ALBANY, N.Y. (WRGB) — Albany County resident Christine Duffy said her home insurance premium keeps rising even though the coverage on her policy hasn’t changed — a trend seen not just in New York but across the country.
“Right now I’m only seeing my rate increase, but not my coverage,” Duffy said. “Every year when the premium goes up, I call them and express my concern and I ask, where is the inflation adjustment? And they don’t answer.”
Her experience is similar to what lawmakers say they’re hearing from homeowners — higher bills that come with reduced or unchanged coverage and little explanation from insurance companies.
At a joint Senate committee hearing Tuesday, lawmakers heard testimony as they examined the driving forces behind the hike and the challenges it creates for homeowners.
“This crisis is making it more difficult to afford to buy a home. It’s making it more difficult to afford to rent a home. In excess of 20 percent of rent is attributable to homeowners insurance,” said state Sen. James Skoufis, D-Cornwall, who also chairs the Senate Standing Committee on Investigations and Government Operations.
Consumer Reports was among the groups testifying at the hearing.
“In New York in particular, homeowners have dealt with average increases of over $1,000 in their premium since 2020,” said Alexandra Grose, senior counsel for sustainability at Consumer Reports. “Insurance companies generally aren’t transparent about how they set their pricing.”
Grose attributed the costs to several factors, including rising construction expenses and the growing impact of climate-driven disasters.
“It’s multiple factors,” she said. “But largely it’s escalating climate impacts from climate change. We’ve got undeniably more disasters per year than we’ve ever seen.”
Skoufis said lawmakers are now evaluating policy responses for the upcoming legislative session.
“Some of the responses that we can move forward with when we get to session in January include making sure regulators have all the tools and the mandates they need to ensure insurance companies are not ripping off their policyholders,” he said.
To increase transparency, Consumer Reports urged lawmakers to adopt a “Homeowners Insurance Bill of Rights,” which outlines protections such as plain-language explanations of coverage, advance notice before cancellations or major rate hikes, clear disclosure of the risk factors that determine premiums, and six other conditions aimed at increasing transparency and protections.
Grose said more than 40,000 consumers have signed Consumer Reports’ petition supporting the proposal.
Following the hearing, Skoufis said lawmakers are now drafting a final report that will include recommendations for addressing rising premiums and unstable coverage across the state.