June 03, 2006
‘Homeowners Insurance Rates Unfair’
As forecasters predict a more active Atlantic hurricane season this year, insurance companies have lost no time to up their charges. Consequently, consumers in some areas may notice a rise in insurance premiums. Some people are refusing to take this arbitrary hike lying down. Massachusetts’s state Attorney General Tom Reilly is one such person.
According to Reilly, the insurance industry is using an unexplained model for determining future hurricanes. This allows them to overcharge for expenses, and inflate its numbers to justify a proposed 12.9 percent statewide rate hike. This includes a 25 percent increase in the cost of homeowner insurance on Cape Cod. Reilly filed his final brief with the Division of Insurance, as part of the rate setting case for the FAIR Plan, operated by the Massachusetts Property Insurance Underwriting Association (MPIUA). Consumeraffairs.com reports:
Reilly is recommending no overall rate increase statewide in 2006 - including rate decreases for homeowners in many communities - and a slight increase, 1.2 percent, for Cape Cod homeowners.
Read more: Homeowners Insurance Rates Unfair, Massachusetts Charges
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