Massachusetts Looks to Increase FAIR Plan Rates

Residents of Massachusetts who rely on FAIR Plans in order to have access to home insurance could see their premiums go up significantly in the near future. FAIR Plans are insurance plans for people living in high-risk areas or with high-risk problems who would otherwise be excluded from getting a cheap home owner insurance quote. These plans are underwritten by the insurance companies operating in each state.

The Massachusetts Property Insurance Underwriting Association (MPIUA) is asking the state for permission to raise its rates for people who get home owner insurance through the FAIR Plan. These increases would range from 1.9 percent for residents with Homeowners Multi-Peril Coverage to seven percent for people with Dwelling Fire and Extended Coverage. The change is needed, say administrators, to cover rising costs within the insurance industry.

The proposed rate increases would go into effect for people getting a home insurance quote through the FAIR Plan after December 31, 2009.