Cape homeowners seek reassurance as insurance rates rise

Over the past few years, homeowners insurance has gone from being just another bill to being a major financial concern for Cape many residents.

And as homeowners coverage has become a bigger part of many budgets, policyholders are finding themselves with more and more questions about how their insurance works and how premiums are determined.

"We are seeing more people calling and wanting to talk to us about their insurance, particularly their homeowners (insurance), because the prices have gone up so much over the past couple years," said Charles Robinson, president and chief executive officer of Rogers and Gray, an insurance agency based in South Dennis.

Like Robinson, many insurance experts are finding that consumer education has become an increasingly important part of their jobs.

Homeowners insurance started to garner attention in the region in 2004, when several companies cut back on their coverage on the Cape or pulled out of the region entirely.

Many homeowners were forced into the FAIR Plan, the legislatively-created insurance company for those unable to obtain coverage elsewhere. Those who remained with private companies often saw their rates skyrocket.

"Such large increases in insurance premiums certainly motivate consumers to ask more questions and raise more issues as to why this is happening," said FAIR Plan President John Golembeski.

High prices are just part of the equation. Consumers are also starting to inquire about the details of their wind deductibles, the way the cost of replacing their home is determined, and how any optional coverage they have purchased affects their bottom line.

Source: http://www.capecodonline.com