MA Senator Calls For Homeowners Insurance Rate Increase Review

A leading member of the Massachusetts state senate has called on the state’s director of insurance to review a recent homeowners insurance rate increase. State Senator Michael J. Barrett, chairman of the Senate’s Post Audit and Oversight Committee, wrote a letter to Insurance Commissioner Daniel Judson regarding the homeowners insurance rate increase the office granted last month. The letter called for public hearings to determine if the insurance carriers have sufficient justification for the rate hikes.

Details of the Homeowners Insurance Rate Increase Letter

Sen. Barrett’s letter cited a report from the state attorney general’s office regarding the recent homeowners insurance rate increase. The report found that the nine percent rate hikes by Mapfre USA and Safety Insurance Co. were excessive. The report claims that, instead of a homeowners insurance rate increase, Mapfre should have reduced its rates. The report also states that Safety should have increased its rates by three percent, at most, rather than the nine percent approved the by state’s division of insurance.

Homeowners Insurance Rate Increase Due to Winter Storm Damage

The attorney general’s report also stated that the homeowners insurance rate increases by Mapfre and Safety received approval from the Division of Insurance due to last winter’s severe weather. The Boston area saw more than nine feet of snow last winter. The insurance carriers claimed that they sustained more than $1 billion in losses across the state due to winter storm damage. They also allege that the heavy losses justify their request for homeowners insurance rate increases. The report also showed that the carriers used other recent storms to justify the homeowners insurance rate increase, rather than using long-term data typically employed to calculate premium payments.

Senator: Homeowners Insurance Rate Increase Deserves Public Hearings

Sen. Barrett told reporters that consumers deserve to have their voices heard when the state considers approving such a steep homeowners insurance rate increase. He said that the process that led to the approval of the most recent homeowners insurance rate increase, “went off the rails in this particular case.” He also said consumers, “need a formal, serious public consideration” of the homeowners insurance rate increase. He called on the Division of Insurance to open up the rate review hearings and allow public input on rate changes.

Source: Boston Globe

Get Answers For Your Homeowners Insurance Lawsuit Questions

To find out how we can answer your questions about a homeowners insurance lawsuit, contact one of our attorneys today. Our intake team will take down the details of your case and quickly connect you to an attorney who understands how to get the most from your homeowners insurance lawsuit. You can also fill out the “Free Case Evaluation” form at the top of this page.

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.