RI 2026 H7478: Insurance - Homeowner Casualty Insurance Bill of Rights

Plain-English Summary

This legislation mandates that insurance companies issuing residential property casualty policies in Rhode Island must provide a "Homeowner Casualty Insurance Bill of Rights" to policyholders who file a claim. This document must be sent within fourteen days of the initial claim communication, unless a state of emergency is declared. The bill outlines the specific text required in this notice, which summarizes existing rights regarding claim acknowledgment, investigation timelines, and settlement periods. It also provides advice to homeowners regarding repairs and contractors. The bill creates a regulatory requirement for insurers but does not establish new civil causes of action for policyholders.

For younger readers

This new law helps people who own homes when they have to ask their insurance company for help, like after a storm breaks a window. When a homeowner tells the insurance company about the damage, the company must send them a special paper called a "Bill of Rights." This paper explains the rules the insurance company must follow, such as how fast they need to answer or pay for the damage. It also gives the homeowner good advice, like making sure to check if a repair worker has a license. This helps families understand what to expect.

Who & Where It Applies

Impacted groups

HomeownersInsurance CompaniesResidential ContractorsDepartment of Business RegulationPolicyholders

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

Amount unknown

Bill Analysis

Both viewpoints

For Progressives

Empowers consumers and average homeowners by ensuring they are explicitly informed of their rights and the timeline for claims in plain language, reducing the power imbalance between individuals and large corporations.
Protects vulnerable populations from predatory contractors by including specific government-mandated advice on verifying contractor licenses and insurance coverage before agreeing to repairs.
Increases corporate accountability by mandating that insurance companies acknowledge and process claims within specific timeframes, ensuring that residents are not ignored during times of crisis.
Explicitly prohibits the creation of a civil cause of action, meaning that policyholders cannot sue the insurance company specifically for failing to provide this bill of rights, rendering the protections somewhat toothless.
Fails to implement systemic reform or expand actual coverage benefits for the poor, as it merely summarizes existing laws rather than creating new substantive protections or financial safety nets.
Relies on the Department of Business Regulation for enforcement through unspecified penalties, which may result in weak oversight compared to allowing direct legal recourse for consumers.

For Conservatives

Explicitly prevents the creation of new civil causes of action, protecting businesses from potential frivolous lawsuits based solely on administrative paperwork errors.
Encourages personal responsibility by advising homeowners to take specific steps, such as verifying contractor licenses and reading contracts carefully, rather than relying solely on government intervention.
Clarifies existing statutory requirements without imposing new coverage mandates or complex financial burdens on the insurance industry, preserving market stability.
Imposes additional regulatory burdens and red tape on private businesses by mandating specific communication timelines and paperwork, potentially interfering with efficient operations.
Grants an unelected bureaucrat (the Director of the Department of Business Regulation) the authority to determine penalties for non-compliance without specific statutory limits on those fines.
Constitutes government-compelled speech by forcing private companies to distribute a specific government-drafted document to their clients, infringing on corporate autonomy.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 70 additions

SECTION 1. Title 27 of the General Laws entitled "INSURANCE" is hereby amended by adding thereto the following chapter: 27-8.4-1. Short title. This chapter shall be known and may be cited as the "Homeowner Casualty Insurance Bill of Rights". 27-8.4-2. Legislative purpose. It is the purpose of this chapter to summarize, in simple, nontechnical terms, existing Rhode Island law regarding the rights of a personal residential property insurance policyholder who files a claim of loss. 27-8.4-3. Timely submission. An insurer, issuing a homeowner's residential property casualty insurance policy in this state, shall provide a homeowner casualty insurance bill of rights notice to a policyholder within fourteen (14) days after receiving an initial communication with respect to a claim, unless the claim follows an event that is the subject of a declaration of a state of emergency by the governor. 27-8.4-4. Limitation of policyholder’s rights.

(a) The homeowner casualty insurance bill of rights is specific to the claims process and does not represent all of a policyholder’s rights under Rhode Island law regarding the insurance policy;

(b) The homeowner casualty insurance bill of rights does not create a civil cause of action by any individual policyholder or class of policyholders against an insurer or insurers; and

(c) The homeowner casualty insurance bill of rights does not enlarge, modify, or contravene statutory requirements, and does not prohibit an insurer from exercising its right to repair damaged property in compliance with the terms of an applicable policy. 27-8.4-5. Statutory form of the homeowner casualty insurance bill of rights. The homeowner casualty insurance bill of rights shall state the following: HOMEOWNER CASUALTY INSURANCE BILL OF RIGHTS This Bill of Rights is specific to the claims process and does not represent all of your rights under Rhode Island law regarding your policy. There are also exceptions to the stated timelines when conditions are beyond your insurance company’s control. This document does not create a civil cause of action by an individual policyholder, or a class of policyholders, against an insurer or insurers and does not prohibit an insurer from exercising its right to repair damaged property in compliance with the terms of an applicable policy. YOU HAVE THE RIGHT TO: 1. Receive from your insurance company an acknowledgment of your reported claim within fourteen (14) days after the time you communicated the claim. 2. Upon written request, receive from your insurance company within twenty (20) days after you have submitted a complete proof-of-loss statement to your insurance company confirmation that your claim is being investigated. 3. Within thirty (30) days, receive full settlement payment for your claim or payment of the undisputed portion of your claim, or your insurance company’s denial of your claim. 4. Contact the Rhode Island department of business regulation, insurance division, with any insurance claim or questions pertaining to the handling of your claim. You can seek assistance by phone at (401) 462-9520 or online at the Rhode Island department of business regulation, insurance division website at https://dbr.ri.gov./insurance. YOU ARE ADVISED TO: 1. Contact your insurance company before entering into any contract for repairs to confirm any managed repair policy provisions or optional preferred vendors. 2. Make and document emergency repairs that are necessary to prevent further damage. Keep the damaged property, if feasible, keep all receipts, and take photographs of damage before and after any repairs. 3. Carefully read any contract that requires you to pay out-of-pocket expenses or a fee that is based on a percentage of the insurance proceeds that you will receive for repairing or replacing your property. 4. Confirm that the contractor you choose is licensed to do business in Rhode Island. You can verify a contractor’s license and check to see if there are any complaints against the contractor by searching online through the Rhode Island contractors’ registration and licensing board at their website, https://crb.ri.gov/search/contractor-search. You should also ask the contractor for references from previous work. 5. Require all contractors to provide proof of insurance before beginning repairs. 6. Take precautions if the damage requires you to leave your home, including securing your property and turning off your gas, water, and electricity, contacting your insurance company and providing a phone number where you can be reached. 27-8.4-6. Penalty. The failure of an insurer to properly deliver the homeowner casualty insurance bill of rights may result in a penalty to be determined by the director of the department of business regulation, insurance division but is not admissible as evidence in a civil action against an insurer. 27-8.4-7. Severability. If any clause, sentence, paragraph, section, or part of this chapter shall be adjudged by any court of competent jurisdiction to be unconstitutional or otherwise invalid, that judgment shall not affect, impair, or invalidate the remainder of this chapter but shall be confined in its operation to the clause, sentence, paragraph, section, or part directly involved in the controversy in which that judgment shall have been rendered.

SECTION 2. This act shall take effect upon passage.