Massachusetts Rejects Mapfre’s Ice-Dam Deductible Request

The Massachusetts Division of Insurance recently denied the state’s largest commercial home insurer’s request to add an ice-dam deductible to some policies.

Mapfre USA Corp. had asked the Division to approve the first-of-its-kind deductible, which would have ranged from $1,000 up to $10,000. Mapfre said the deductible would have applied to policyholders who previously had multiple ice-dam claims.

Ice dams form at roof’s edge during winter and prevent melted snow from draining properly, which can cause damage to the structure’s interior. Ice-dam damage was a major problem and contributed to losses during last winter’s record-setting snowfall in Massachusetts.

“The Division disapproved of the filing because the criteria proposed to apply the deductible was not clear,” Division spokesperson Chris Goetcheus said. “Further, whether or not the deductible was applied and at what amount was at the company’s discretion, unlike windstorm or hurricane deductibles which are triggered by an independent third party’s measurement.”

Mapfre’s senior vice president and chief technical officer Matthew Wilcox said the company explored the introduction of an ice-dam deductible, which would have been used to provide customers with multiple ice-dam claims an option in lieu of cancellation.

“The deductible also would have offered a small premium benefit to customers,” said Wilcox. “While we believe the deductible was a fair approach, we respect the Division of Insurance’s decision and do not plan on re-submitting.”