home insurance

Report: Home insurance rates yield high profits, get little scrutiny

senmikeb
Press Release

A report by the State Senate lambasts the process of setting Massachusetts home insurance rates and calls for immediate changes to state law to protect residents.

In 2015 the Massachusetts Division of Insurance considered, and granted, requests by several of the state’s biggest insurers to raise their rates on homeowners coverage by as much as 9%. Yet neither the public, nor state legislators, nor insurance experts in the state Attorney General’s office, were informed of the requests.

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Home insurance hikes draw Senate scrutiny

senmikeb
Press Release

Boston — Responding to recent Division of Insurance approvals of big hikes in home insurance rates, the State Senate’s oversight body is launching an inquiry into the increases. State Senator Mike Barrett (D-Lexington), Chair of the Senate Post Audit and Oversight Committee, says he wants to hear explanations from insurance executives and Division of Insurance regulators, and comments from consumer advocates.

“Last winter, insurers shelled out real money to pay for damage from ice dams and water leaks — but hikes of eight and nine percent deserve a very close look by regulators and legislators,” Barrett said. “The industry is supposed to set aside reserves in advance for the occasional tough year. I hope the Division of Insurance went to town with its due diligence before approving these big increases. Let’s see if they did. We want to make sure residents are protected.”

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