FOR IMMEDIATE RELEASE:                                                               
December 12, 2006                                                                                        
                                                                                                                       

Fresolo Leads Fight To Reduce Multi-Family Homeowner Insurance Premiums

Boston, MA – Representative John P. Fresolo (D-Worcester) filed legislation this week titled, “An Act Relative To Homeowners Insurance,” which will place a cap on what insurance companies may base premiums upon for multi-dwelling homeowners insurance policies.

“Recently, I have become aware of insurance companies basing their premiums for three-family homes on the full replacement value of the home, which has dramatically increased premiums,” said Rep. Fresolo.  “In one instance, last year a homeowner’s premium for a three-family on Plantation Street was $1,413 based on a reasonable value of $268,500.  This year, that same homeowner saw his premium increase to $4,133 on the very same property, which is now based on the replacement value of $652,000.  This of course is totally outrageous and overwhelming to many homeowners that did not anticipate a 300% increase in their homeowner’s insurance within one year,” stated Rep. Fresolo.

The filed legislation would allow insurance companies to base premiums on no more that 50% of the replacement cost for a multi-dwelling.  The current formula allows insurance companies to base premiums on upwards of 80% to 100% of the replacement value.  For most homeowners affected, the chances of receiving the full replacement value of the home upon damage or destruction are slim.

Rep. Fresolo’s district includes the areas of Union Hill, Vernon Hill, Grafton Hill, Quinsigamond Village and Green Island, which have a high percentage of multi-family dwellings owned by senior citizens and working-class families.  “This sharp increase in homeowner insurance premiums will have a financially devastating impact on many residents in my district.  It is my job as the State Representative to make sure that insurance companies do not put their bottom lines before the well-being of my constituents,” said Rep. Fresolo.

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