March 2008

Mass. Property Insurance Underwriting Association (FAIR Plan) receives approval for another 25% rate hike on Cape Cod.

The MPIUA says rate hikes are needed to keep up with large predicted hurricane losses and the high costs of reinsurance (insurance bought by insurance companies to cover large losses).

The original proposed effective date was  July 1, 2007. The increase was opposed by, among others, state Attorney General Martha Coakley, and Citizens for Homeowners Insurance Reform, the Cape Cod group founded by Eastham Resident Paula Aschettino ( www.homeownersinsurancereform.org, email insreform@aol.com, (508) 240-5231).

The implementation date for the increase is still undetermined.

40% of all homes on Cape Cod are now insured with the MPIUA.