Higher Homeowners Insurance Rates Spark Complaints Among Massachusetts Policy Holders

A rise in homeowners insurance rates due to winter storms has caused a rash of complaints among policy holders in Massachusetts. A recent Boston Globe report showed that homeowners insurance rates across the state have risen by nearly ten percent. The rise in insurance premiums has prompted both consumer groups and the state attorney general’s office to call for investigations. The increase has also prompted the state’s insurance department to open its hearings to the public for the first time in history.

Insurers Justify Homeowners Insurance Rate Hike

The Globe report quoted representatives from the state’s insurance providers on why they saw fit to raise homeowners insurance rates across the state. According to the report, the rate hikes stem from record snowfalls this past winter. The insurers also cited a series of tornadoes that struck the western half of the state in 2012 and an October 2011 snowstorm, each of which caused millions of dollars in damages. The insurers claim that they must raise homeowners insurance rates across the state to recover from those payouts.

Policy Holders See Higher Homeowners Insurance Rates

Losses from the 2014 blizzard prompted some carriers to raise their homeowners insurance rates. The state’s largest insurer, Mapfire USA Corporation, raised its rates by an average of 8.9 percent on more than 210,000 Massachusetts policy holders. The company had raised its homeowners insurance rates by only 2.3 percent the previous year. The rate increase translates to an additional $100 per year for the average Massachusetts policy holder.

Homeowners Insurance Rate Increases Pose Continuing Problems

Some Mapfire customers have seen their homeowners insurance rates increase nearly every year. Paula Aschettino, chairwoman of the consumer watchdog group Citizens for Homeowners Insurance Reform, has her homeowners insurance policy through Mapfire. She showed reporters that her homeowners insurance rates have risen by 17 percent in the last three years. She also said that she expects her premiums to rise another five percent this year, pushing her annual premiums to over $3,100.

Regulators Open Homeowners Insurance Rate Hearings

The complaints about the steep increases in homeowners insurance rates have compelled the Massachusetts Division of Insurance to open their hearings on its approval process to the public for the first time. The agency will host an information hearing to explain to customers how it justifies increases in homeowners insurance rates. The hearing is also expected to address concerns posed by the state Senate and Attorney General’s office.

Source: Boston Globe

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NOTE: This blog post is a news story and does not imply an endorsement of Arguello Law Firm by any of the parties mentioned herein.