Policyholder Protections Blog

Essential Protections as a Standard for Insurers and Insurtech

The Essential Protections for Policyholders provide a roadmap for states to follow in regulating homeowners insurance and a scorecard to evaluate states’ current systems of regulation. Although the Essential Protections are directed at regulators, many of the individual items also can be used to measure how well an insurance company measures up to standards that insurers should adhere to.

The Market for Ignorance in Insurance

Insurance is mostly sold on the basis of ignorance, not information. That needs to change.

Current Law on Essential Protections

In each of the Essential Protections for Policyholders, the report identifies and discusses an issue, recommends action that legislatures or sometimes insurance commissioners should take, usually offers recommended statutory language, and provides context in a summary of current law. Like other scholarship in the law and public policy realm, it requires a certain amount of self-confidence to offer a “best” solution to difficult and important issues.

Who did this work?

Essential Protections for Policyholders is a project of the Rutgers Center for Risk and Responsibility at Rutgers Law School in cooperation with United Policyholders.

What protections are essential for homeowners?

States regulate many aspects of homeowners insurance, and the Essential Protections for Policyholders project focuses on those that are—essential. We had two selection criteria for deciding what to include:

Why Essential Protections?

Homeowners insurance provides financial security. Fires, accidents, and storms may occur, but insurance provides funds to rebuild. Just as important, insurance provides emotional security; policyholders expect their insurance companies to be trusted partners in the process of coping with losses.