Officials with the Martha’s Vineyard Land Bank say that they may have to draw from their reserves to fund increasing insurance costs.
The Land Bank had budgeted about $65,000, based on last year’s premium plus a 15 percent increase; but fiscal officer Jannette Andrews informed commissioners that the premiums are more than double the estimate, nearly $130,000.
In a memo to commissioners, Andrews relayed that the two major contributing factors to the increase are wind deductible/coverage and the increase in building replacement costs. She said that alternate quotes were offered, with premiums between $200,000 and $250,000, and that many insurance companies straight-out refused to offer a premium, as has been the case in the region.
Commissioners took no action during their regular Monday meeting, but did commiserate with staff, many saying that they too had seen their homeowners insurance climb in recent years.
Costs aren’t just increasing locally; rates are going up across the country.
The “2023 Policygenius Home Insurance Pricing Report” found that in 2022, U.S. insurers paid out $99 billion in claims due to natural disasters, the fifth largest amount recorded. The report states that natural disasters and higher building costs led to high insurance premiums.
Policygenius also found that premiums have been increasing significantly in Massachusetts for the past two years. Insurance premiums increased 15 percent in the commonwealth from 2022 to 2023; they increased 11 percent the year prior.
Commissioner Sarah Thulin said that over the past four or five years, her homeowners insurance has increased “astronomically”; commissioner Kristen Reimann said that her premiums have doubled recently.
hi,
Do they put it out to bid?
Bob
Oh no! The land bank only owns 7% of the entire island, which we know is not nearly enough for them. Higher insurance, fewer purchases? This is a real boo-hoo situation. What did they rake in from Chip Chop, by the way?