Massachusetts House Bill H1085

Massachusetts 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25

Caption

Relative to an investigation to review flood insurance rates

Impact

If enacted, the provisions within H1085 could significantly alter how flood insurance premiums are evaluated and regulated within the state. By requiring these investigations, the bill aims to provide greater transparency and accountability in the rates consumers are charged. This measure could provide essential insights into whether current assessments of risk are fair and conducive to economic stability for property owners in flood-prone areas. Furthermore, it can potentially lead to reforms in how flood risks are calculated, possibly leading to more accurate premiums that better represent individual risk profiles.

Summary

House Bill H1085, presented by Representative Bruce J. Ayers, addresses the need for systematic evaluations of flood insurance rates in Massachusetts. The bill mandates the Commissioner of the Division of Insurance to undertake a biennial investigation of rates set by the national flood insurance program. The primary focus of this investigation will be to assess the affordability of flood insurance for both homeowners and business owners, as well as evaluate the sustainability of the program itself. This is tailored to ensure that insurance premiums align accurately with the associated risk of flooding.

Contention

While the bill appears aimed at promoting fairness and accessibility in flood insurance, there could be points of contention regarding its implications on existing insurance frameworks and the potential burden of increased regulatory scrutiny on insurance providers. Stakeholders in the insurance industry may express concerns over the administrative workload associated with complying with the new requirements and how it might influence their pricing strategies. Opponents may argue that while the bill seeks to enhance consumer protection, the adjusted premiums based on biennial reviews could fluctuate significantly, affecting the availability and affordability of flood insurance over time.