A Cape and Islands lawmaker is trying to bridge the growing gap between homeowners and a turbulent insurance market with the introduction of two new legislative bills aimed at providing relief and expanding coverage. But the changes may not have the immediate impact some locals may be hoping for. 

State Senator Julian Cyr recently filed the two bills — one would increase accessibility for homeowners to private flood insurance, while the other would provide grant funding to residents looking to fortify their homes. 

Both have the potential to make the Vineyard insurance market more competitive, according to agents here, which could eventually lead to lower costs. 

The bill introductions come as home insurance prices have risen dramatically in the past few years; the Vineyard, and the Cape and Nantucket as well, have some of the highest nonrenewal rates in the country. There are also new fears, like the looming possibility of tariffs on lumber, oil, and building costs. 

But the timeline of changes in the market, and the question of how much relief homeowners struggling to pay insurance bills will get, remain a mystery.

“Bills like those are good conversation starters, but at the end of the day here, there is no silver bullet,” said Frank O’Brien, general counsel for the Fair Access to Insurance Requirements (FAIR) Plan, also known as the Massachusetts Property Insurance Underwriting Association (MPIUA). 

“There is no magic answer. There are a lot of hard questions, and hard decisions that need to be made,” O’Brien added. “There are a number of policy issues … both of those bills will begin the public policy debate.”

Under the FAIR Plan, One of Cyr’s bills could address a rift in flood insurance, the most common form of insurance on the Vineyard. About 37 percent of Islanders have turned to the MPIUA, or FAIR Plan, in order to keep coverage on their homes as numerous major providers leave the Island. 

Islanders are leaning on the FAIR Plan more than any other insurance group out of necessity. When some providers are leaving and others are quoting 30 to 350 percent increases, locals have nowhere to go but to the one company that can rarely deny coverage. 

As of now, flood insurance is offered separately from the FAIR Plan and private insurance companies, primarily through the National Flood Insurance Program (NFIP).

One of the bills — Bill S.719: An Act Relative to Private Flood Insurance — could help change that. Cyr’s intention is to reduce reliance on the national flood plan, and, as he told The Times, “promote a more robust flood insurance market.”

The goal is for flood insurers to “meet or exceed” the standards of the federal market’s National Flood Insurance Program (NFIP) and be required to cover homes that are in flood zones. It has language preventing a flood insurer from not renewing a client because they are closer to a body of water, and specifically from not covering homes that are at greater risk of flooding. For Islanders, this could open up greater access to this type of coverage, as many larger insurance companies have not renewed plans on the basis of flood risk in recent years. 

The proposal is likely a longer-term solution. O’Brien said a more robust flood insurance market wouldn’t make the most important impact that homeowners have directly asked for: lower prices on their general policy. 

Richard Soo Hoo of Sterling Insurance in Vineyard Haven also said the flood insurance bill sounds like a long-term venture. “If the bill can help convince more people to participate in flood insurance, then that should theoretically help spread the risk out among more people and lower the cost overall,” he said. 

The second bill Cyr introduced is Bill S.720: An Act to Promote Climate Resilient Homes, which proposes the creation of a grant program for homeowners who are interested in fortifying their home against the possibility of storms and natural disasters. The proposed grant program would enlist federal funding to finance projects for eligible Cape and Islands homeowners. 

Homes that are more climate resilient are sometimes offered lower insurance rates. 

While O’Brien said the FAIR Plan doesn’t have programs that lower cost or provide discounts at the moment for this type of fortification, he clarified that a grant program like this could have significant long-term benefits to the homeowners who are navigating this changing insurance market. And a more fortified home may be offered a lower initial rate by the FAIR Plan. 

The FAIR Plan will give recommendations to homeowners for protecting their property or making necessary repairs, but won’t necessarily lower the cost if this work is done after their first quoted premium. 

O’Brien recently announced the FAIR Plan will allow homeowners to buy an “Excess and Surplus” insurance plan for the additional cost of their home that extends beyond $1 million, so locals can be sure their entire house is covered in the event of a catastrophic natural disaster or random destructive event. While this change won’t lower costs for the average Islander who is struggling with their insurance bills, it serves as another step in the larger system of insurance market changes. 

Joe Gervais, owner of Tashmoo Insurance, said he’s glad there are moves being made. “I don’t foresee this making a drastic change in the rate,” he said. But, any forward motion counts for something, according to Gervais. 

Hearings for Cyr’s bills will be open to the public this spring, summer, and fall. Locals can tune in through the Massachusetts legislature website. 

“It’ll be really crucial for Islanders to weigh in at those hearings about the need for encouraging private flood insurance, the need for assistance related to resident homes and making upgrades to our homes,” Cyr said. 

Many agents are preparing to ride the next wave of the market and adjust to the changing times. Soo Hoo is hopeful that the insurance market is turning around. “I have started to see signs that the Island market may be hitting the bottom … There’s a possibility that it could improve in the next year, but it may take longer due to the insurance companies’ being overly cautious,” he told The Times.