SPRINGFIELD, Ill. (WAND) — If you feel your home insurance rates have gone up in recent years, you’re not alone.

Rising costs for construction and labor have been met with higher interest rates, but climate change is also a critical factor creating pressure for insurance companies to raise premiums.

State lawmakers are considering a bill this spring to help provide transparency on how climate change impacts insurance rates. The consumer protection initiative is a top priority for the Illinois Department of Insurance.

“What the Illinois Department of Insurance is doing, and what they’re doing nationally, is gathering information so that insurance commissioners throughout the country have a better understanding of the impacts of climate change on your rates,” said Rep. Bob Morgan (D-Deerfield).

The legislation would require insurance companies to improve consumer notification for policy cancellation, especially due to climate change. It also calls on all insurers to participate in climate surveys issued by the National Association of Insurance Commissioners to provide transparency on how they manage climate-related risks.

Morgan said his bill could strengthen the state’s ability to implement and enforce data calls, or collection of information from insurers, so consumers can truly know how climate change impacts rates.

“When you’re issuing a fine against an insurance company, that translates to higher rates against the consumer,” said Rep. Jeff Keicher (R-Sycamore). “We just want to make sure that that’s not used as a cudgel for the department to hold it over carriers’ heads.”

However, Morgan said the specific penalty companies could face for violating this change will be worked out when the bill is in the Senate.

House Bill 3799 passed out of the House on a partisan 75-38 vote. This plan was referred to the Senate Assignments Committee Monday.

Senators could discuss the measure when they return to Springfield April 29.

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