SPRINGFIELD, Ill. (WAND) — Illinois Senate Democrats passed a measure Wednesday to protect homeowners from unfair rate hikes.

The proposal could ban insurance companies from increasing homeowner insurance premiums by more than 10% without notifying consumers 60 days prior. 

Sponsors said this change could allow customers to look for cheaper options with another provider.

This plan also prohibits homeowner insurance premiums from being excessive, inadequate or unfairly discriminatory. House Bill 4273 bans insurance companies from shifting the cost of losses or high claim payouts in other states to Illinois homeowners as well.

"The average Illinois homeowner now pays well over $3,000 annually for coverage," said Sen. Michael Hastings (D-Frankfort). "Those aren't just numbers on a page. These are real people in Frankfort, Springfield and Chicago and every community in between those who are forced between paying their insurance premium and covering groceries."

This plan passed out of the Senate on a partisan 43-14 vote with one senator voting present. It now moves to the House for further consideration. 

"A year from now we'll be looking back and seeing this is going to lead to higher rates, higher fees and taxes onto insurance companies thus onto consumers," said Sen. Dave Syverson (R-Cherry Valley). "We're not going to get the results that we intended." 

Illinois Insurance Association Executive Director Kevin Martin previously told WAND News this plan could cause homeowner insurance premiums to increase on average up to 20% or $230.

"This bill aligns Illinois with 48 other states, not by squeezing the insurance industry, but simply by giving the Illinois Department of Insurance the ability to analyze the numbers and deny rates that have no basis in reality." 

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