Massachusetts Homeowners Express Concern Over Rising Rates

The Massachusetts Division of Insurance recently published on its website written public comments that were received in conjunction with the Division’s informational hearings on the Massachusetts home insurance marketplace.

These consumer comments illustrate how some Massachusetts homeowners are feeling increasingly frustrated over the rising cost of home insurance.

In one example, a homeowner in the Cape Cod region said her premiums have risen to the point where selling her home has become “an enticing prospect.”

“I have been a homeowner on Cape Cod for over 20 years. I have never submitted a claim,” the homeowner wrote. “My insurance rate has risen from $600.00 per year to the current rate of $1725.00. I don’t live near the water or any other possible natural disaster making area.”

“It is absolutely ridiculous that the cost of insurance climbs while people are not receiving increases in their income,” she said.

In another comment, a senior citizen who bought her Sagamore duplex in 1997 said the rising rates are making it difficult for her to make ends meet.

She said that in 1997, her premium was $500 per year with a 2 percent wind deductible and a $500 regular deductible.

“I have never put in a claim since I have owned the house,” she said. She now pays $2,300, with a 5 percent wind deductible and a $2,000 regular deductible.

And an Eastham homeowner said in his comment that his home was built in 2008 to the newly adopted building standards, taken from the Dade County, Florida, codes. In 2008, his annual premium was $2,018, but after consecutive years of rate hikes, the premium rose to $3,951 in 2014.

“I find this incredible, a 96 percent increase from 2008 to 2014, while inflation is roughly 2-3 percent per year, and for a home built specifically to the new stringent building codes,” he said. “The insurance costs now surpass the property taxes.”

The Massachusetts Division of Insurance has been holding a number of informational hearings to examine the home insurance marketplace. Spokesperson Chris Goetcheus said that going forward, the Division may issue a decision, create or require additional guidance for consumers and the industry regarding rates and products, or take any other actions deemed appropriate.

The topic of rising home insurance rates has been in the media spotlight in Massachusetts in recent months, following the news of above-average rate hikes approved for home insurers.

The Division last year approved premium hikes for a number of large home insurers after a harsh winter led to increased claims activity. Mapfre USA Corp., the state’s largest commercial home insurer, with 215,000 home policyholders, got the approval to raise rates by 8.9 percent on average beginning Aug. 1, 2015. Safety Insurance, which insures 150,000 homeowners in the state, was approved to raise rates by 9.1 percent on average beginning in December 2015.