Minnesota Homeowners Paying More For Less As Insurers Push Anti-Consumer Alternative Dispute And Legal Reform Proposals
MINNESOTA – Minnesota homeowners, small businesses, and renters, who are already struggling with skyrocketing home insurance costs, face some of the steepest inclines of premiums in the nation, according to a new analysis by Lending Tree. Minnesota policyholders have seen home insurance premiums surge by over 88% since 2020, only trailing Colorado and Iowa in increases over the past five years.
Unlocking America’s Future is warning Minnesota home and property owners that it could get worse if the state’s legislative Task Force on Homeowners and Commercial Property Insurance moves forward with two insurance industry-driven recommendations that have been proven to harm policyholders and make the crisis worse. The task force’s final meeting is today, and they are expected to submit final recommendations to the state legislature by the end of the month.
“The first principle of any home insurance reforms should be to put homeowners and families first and do no more harm to policyholders, who face crippling rate hikes as insurers’ profits soar,” said Kyle Herrig from Unlocking America’s Future. “Task force members should reject failed insurance industry-driven recommendations and instead focus on reforms that will lower costs for policyholders and help homeowners.”
Two proposals under consideration by the task force have failed in other states, which limited homeowners’ ability to get payment on legitimate claims, stacked the deck against homeowners, and undermined homeowners’ ability to hold insurers accountable and seek justice.
One insurance industry recommendation would focus on limiting policyholders’ ability to sue insurance companies over delayed, denied, and lowball settlement offers, while another would double down on an alternative dispute resolution arbitration process that – while possibly giving consumers additional time to dispute appraisals – could still end up stacked in insurers’ favor and against homeowners. Several state legislatures and regulators are grappling with industry-driven reforms that have only exacerbated the crisis for homeowners.
In Florida, as home insurance costs continue to skyrocket, as insurers’ claim denial rates grow, lawsuits have actually become increasingly more regular after legislation passed in 2023 limited policyholders’ ability to seek payments and promulgated legal system abuses by insurers. Similarly, in Oklahoma, critics are warning that the efforts proposed by the state’s insurance commissioner to limit policyholders’ ability to sue would only further benefit insurers. Florida also established an alternative dispute process for the state’s Citizens Property Insurance Corporation, which is stacked against homeowners, who lose more than 90% of the time.
“Minnesota’s task force members should heed the warnings and avoid the same mistakes made by other states grappling with the affordability crisis created by captured regulators and the insurance industry,” added Herrig.
Email press@focalpointstrategygroup.com to connect with additional home insurance and legal experts.
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