Maine Homeowners Rates Spike Upward
NU Online News Service, Jan. 8, 10:35 a.m. EST?Average premiums for homeowners insurance in Maine soared 30 percent between 2000 and 2003, according to a new report prepared by the Maine Bureau of Insurance.[@@]
The research, which was mandated by the governor and the state legislature, was undertaken in part because of consumer complaints of rising rates and declining coverage. It found that in the past three years, insurers raised rates and tightened standards to reduce their risk exposure, a trend that was broadly seen across the country.
One recommendation in the report suggests that the state prohibit nonrenewals based solely on valid claims from the prior two-year period, unless the carrier can show multiple losses of the same nature during that timeframe.
"All sources of information reviewed by the bureau identified homeowners and apartment owners insurance as difficult to obtain in the marketplace," the report stated. The study also said average premium per policy increased by some 30 percent, while at the same time there was a 6 percent decline in the number of insured properties.
The state lawmakers focusing banking and financial services will review the report and its suggestions for addressing policyholders' concerns in the coming weeks.
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