Despite indications that a 28.4 percent statewide rate hike is called for, the Massachusetts Fair Plan is requesting a 12.5 percent hike across all homeowners policies. The residual market insurer’s overall request includes an average hike of 12.9 percent on the major homeowners forms (HO-2,3,5) and a slight 0.3 percent jump for tenants’ policies (HO-6). The organization has also asked for an increase of 6.4 percent on dwelling policies statewide. Officials said actuarial indications support a filing for an increase of 29.3 percent for homeowners and 9.3 percent for dwellings.
The Fair Plan has asked for its biggest increases for coastal Cape Cod, where it has emerged as the leading property insurer. For Cape homes, it has filed for an average 25 percent hike, although its actuaries maintain that experience supports as much as a 68 percent increase.
In Cambridge, Boston, Springfield and other urban areas, rates would go up about 5 or 6 percent or not at all.
The residual market property insurer has voluntarily “tempered” its rate request, exercising restraint under a new law that lifts caps on how much of an increase it can seek, according to John K. Golembeski, president of the Massachusetts Property Insurance Underwriting Association, the Fair Plan’s formal name.
The insurance commissioner must still approve any final rates. A public hearing has been called for Oct. 11.
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