Massachusetts residents arguing against homeowners insurance hike
A group of homeowners in Massachusetts is speaking out against a proposed increase in homeowners insurance rates charged by the state's insurer of last resort.
A recent proposal from the Massachusetts Property Insurance Underwriting Association called the FAIR Plan would increase rates by an average of 7.2 percent and as much as 10 percent in some areas.
One local insurance agent told SouthCoastToday.com that some homes in high-risk zones already carry annual insurance premiums of roughly $1,500 - more than triple what it might have cost 10 years earlier. However, FAIR Plan officials say that computer models are showing higher hurricane risks, justifying the increases.
"That's a big piece of why we're looking at a rate change," Robert Tommasino, general counsel for the FAIR Plan, told the site.
The source reports that there are private homeowners insurance companies working in higher-risk parts of the state. However, underwriting for new customers is generally very strict.
Homeowners' concerns echo those expressed by some state officials. In a letter last November, Attorney General Martha Coakley called the situation "troubling" and asked that the state's rating bureau review rate filings.
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