Industry News

Massachusetts Realtors urge homeowner’s insurance reform

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The Massachusetts Association of Realtors today expressed support for legislation filed on Beacon Hill that would prohibit the use of a consumer's numerical credit score or other credit rating systems as a determinant factor in setting rates for homeowner's and renter's insurance. In testimony before the state Legislature's Joint Committee on Insurance, MAR officials urged passage of S.B. 2093, noting that continued use of credit scores to set insurance premiums could create a new barrier to home ownership for low-income, first-time home buyers. "Credit scores should be used to measure a borrower's risk of defaulting on a loan, not as a means to deny a person's eligibility to become a homeowner," said MAR President Judy Moore, of RE/MAX Premier Properties in Lexington. "Even for those with good credit, it's become increasingly more difficult and costly to obtain homeowner's insurance coverage during the past couple of years. We believe additional consumer protections are necessary...