Just when you thought you’d survived the damage and repairs from record snowfall last winter, Massachusetts homeowners will see an average nine percent (9%) increase on their next insurance bill. While you’re focused on your house, repairs and insurance claims, the insurance industry has cost data for thousands of claims to support the need for higher homeowner insurance rates.
Insurance rates are regulated and the state’s largest insurance companies have received approval for rate increases from the Massachusetts Division of Insurance. “The increases could translate to an additional $100 on the average Massachusetts premium of $1,150.” according to BostonGlobe.com.
Higher Homeowner Insurance Rates Approved
Boston Globe’s article goes into more details on how the insurance companies justified the significantly higher rates. For example, Safety Insurance Co. estimated that it’s damage claims for snow and ice cost $82 million compared to $20 million in 2011 (what about 2012 to 2014?). More interesting is that Safety Insurance had to submit claims to it’s own insurance plan (known as reinsurance) to cover excessive claims.
As we head towards winter, the insurance industry is still dealing with claims for last winter. According to the BostonGlobe.com article, “Insurers paid an average of $10,000 for each claim, he said, many of them tied to ice dams, which formed on roofs as the snow melted and refroze, preventing proper drainage. That triggered a cascade of other water-related problems that damaged walls, ceilings, and roofs.”
Fortunately Massachusetts has a very competitive insurance marketplace with 76 licensed companies writing roughly 1.9 million homeowner policies annually. So it pays to shop around but you can expect more companies to apply for, and get approval for rate increases to compensate for not only winter storms but the increasing rate of weather events from tornadoes to tropical storms.
When Will Insurance Companies Give Credit for Ice Dam Solutions?
We’re sure you’re not happy the impending the higher insurance premiums you’ll be paying soon. That’s especially true if you don’t feel like you received enough money to cover repairs from ice dam problems. And then there’s the question of how to prevent the same thing from happening again, adding more costs for you as the homeowner.
Let’s review homeowner costs for dealing with winter snow emergencies. That means when there’s no break in temperature to melt snow from one storm, before the next storm arrives.
- Time and repair costs beyond what insurance claims will cover.
- Time to research, and cost to install solutions to prevent ice dams and other winter problems.
- Higher homeowner insurance rates because of winter claims, even if you didn’t file a claim!
So don’t you think insurance companies should give you credit for improvements you make to prevent future ice dams?