Homeowners insurance rates continue to rise in New England

Increases are modest and likely to stay below 5% in one state, though others are paying price surges reaching into the double digits

Insurance News

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New England is continuing to pay more for its homeowners insurance policies, but rate increases are not spread evenly.

In Maine, rates have increased less than 5% in recent years, according to industry representatives and state officials. This contrasts with Massachusetts, where homeowners have paid up to 10% more for policies following the harsh winter storms of 2014-15. Heavy snows causing roof problems and flooded basements increased claims volumes, and insurers have exacted price increases to reflect the new risk.

This has long been a point of discussion in the state, with some regulators pushing for increased regulation for setting homeowner insurance rates. The insurance industry itself has largely resisted.

Frank Mancini, CEO of the Massachusetts Association of Insurance Agents, has previously told Insurance Business America such changes only add unnecessary steps to the process, potentially mudding the waters.

“Our opposition is that the current rate setting process for homeowner insurance is fine,” Mancini said. “It has been used for decades in Massachusetts, and we continue to have a very competitive marketplace.”

Otherwise, rate increases are par for the course.

According to the Maine Bureau of Insurance, homeowners policy pricing has increased for five consecutive years as number of size of claims also rise. In 2015, rates rose an average 4.1% and subsequent increases are “nothing out of the ordinary at this point,” spokesman Doug Dunbar said.

Those on the coasts are likely seeing bigger increases, however, as insurers prepare for more of the large and damaging storms the region has seen in recent years.

Some of these homeowners may even find coverage “difficult to obtain and more expensive,” according to Dunbar. They will also likely pay higher deductibles for some coverage, including protection against wind damage.
 

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