The Massachusetts Property Insurance Underwriting Association (MPIUA) — also known as the Massachusetts FAIR Plan — will be expanded to include the writing of dwelling liability coverage, effective Jan. 7, 2015.
The expansion is mandated by S-465 (“An Act Relative to Liability Coverage under the Massachusetts Property Insurance Underwriting Association”) which was signed into law by Massachusetts Gov. Deval Patrick on Oct. 9 and became Chapter 346 of the Acts of 2014.
The Massachusetts Association of Insurance Agents (MAIA) said in its bulletin today that this coverage will be offered for new tenant occupied dwelling policies for non-owner occupied, one-to-four residential units, with an effective date of Jan. 7, 2015. Coverage is available as an endorsement to a new dwelling property policy or under a stand-alone personal liability policy.
On existing dwelling property policies with an inception date prior to Jan. 7, 2015, liability cannot at this time be added by endorsement due to time and computer system constraints, MAIA said. Existing policyholders may obtain dwelling liability coverage by either purchasing the stand-alone policy or cancelling the existing dwelling property policy and submitting a new application through the producer portal.
The new business application will be available through the producer portal on Jan. 7, 2015, MAIA noted. Tentative date to endorse to an existing dwelling property policy is March 2015.
MAIA said that by completing and signing the application, applicants — or producers submitting on their behalf — are certifying that the applicant has attempted to obtain non-owner occupied dwelling liability coverage in the voluntary market and has been denied non-owner occupied dwelling liability coverage by at least two insurers in the voluntary market.
Coverage L would provide limits ranging from $100,000 up to $500,000. Rates would vary from less than $100 to more than $500 for the maximum limit for four residential units. Coverage M would provide limits of up to $5,000. Coverage L and M are not available for properties under rehabilitation or construction, MAIA said.
Source: The Massachusetts Association of Insurance Agents
Topics Massachusetts Property
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