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Illinois can now review homeowners rates — probably not your association's master policy

Illinois · Regulation

Illinois can now review homeowners rates — probably not your association's master policy

What happened. Governor Pritzker signed HB 4273 (homeowners) and SB 714 (auto) on August 4, 2026. Both take effect July 1, 2027. They passed May 28, 2026.1

Illinois had been one of only two states — with Wyoming — without rate-review authority over these lines.

What the laws do

  • Give the Illinois Department of Insurance authority to review and approve rate changes;
  • prohibit rates that are “excessive, inadequate, or unfairly discriminatory”;
  • allow the Department to order rebates where rates are found excessive;
  • require 60 days' notice before a homeowners increase of 10% or more (30 days for auto);
  • require insurers to use credible Illinois-specific claims data where available, supplementing with national, regional or out-of-state data only as needed for actuarial credibility; and
  • bar insurers from shifting out-of-state losses onto Illinois consumers.

The push began after a State Farm homeowners increase of about 27%. The Illinois Insurance Association, APCIA and NAMIC opposed, warning the shift “will make it harder for insurers to respond in real time to market conditions.”

The question facing every Illinois board

Does this reach the association's master policy?

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Related Illinois HOA Topics

← All Illinois HOA Topics

  1. Capitol News Illinois, Pritzker signs bills allowing state to review insurance rate hikes (August 4, 2026) ↩
  2. Chicago Sun-Times, Illinois General Assembly passes auto and home insurance rate review (May 28, 2026) ↩
  3. Illinois Department of Insurance, 2025 Cost Containment Annual Report (premium, loss ratio and HO-6 figures) ↩

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