Home Insurance in Massachusetts

What factors influence my home insurance rate?

So, how much is homeowners insurance in Massachusetts?

Homeowners insurance costs in Massachusetts can vary based on numerous factors. Here's a list of elements insurers consider when they determine your premium:

Age of your home

You'll likely pay a higher insurance premium if your home is older. As houses age, key parts such as the electrical system, plumbing, or roofing may become prone to damage. 

On the other hand, newly built homes usually cost less to insure.

Location of your home

Where you live can affect your home insurance premiums. Both your state and ZIP code play a role. 

If your home is in an area with a history of losses, like theft, vandalism, or severe weather, you may have to pay higher rates. For example, if you live in a tornado-prone region, expect to pay more.

Construction style of your home

Homes built with wood framing often have higher insurance costs than those made of block, brick, or stone.

Your credit history

A poor credit history can lead to higher insurance premiums, as many insurers see it as a sign of increased risk.

Your claims history

Insurance companies typically consider your claims history when setting rates. Your premiums may be higher if you've filed a claim in the past three to five years.

Loss history of your home

If you recently purchased a home where the previous owner filed a claim within the last three to five years, you might pay more for insurance.

Type of home insurance policy

There are different types of home insurance policies, each varying in coverage, cost, and the kinds of homes they cover. 

Some policies insure your house at its actual cash value, while others use replacement cost value. Generally, more coverage means higher premiums.

Attractive nuisances

You'll likely face higher insurance costs if your property has potentially dangerous features that attract attention – such as a pool or trampoline. 

Common insurance discounts in Massachusetts

Homeowners can save on insurance policy premiums by leveraging various discounts. 

In Massachusetts, major insurance companies offer several common discounts to help lower your premium. These include:

• Bundling: Also called a multi-policy discount, homeowners can often save money when they bundle two policies, such as auto and homeowners insurance.
• Home condition: If your home is new, insurance providers may see you as a lower risk for claims and offer you lower premiums. With the growing market for newly built homes in Massachusetts, this could be an option worth considering if you're shopping for a house.
• Claims history: If you haven't filed a claim for a while, you may qualify for lower premiums. However, claims history can be property-specific, so if you're not the original owner or bought your home recently, you may need to check how many claims have been filed at your address.
• Loyalty: If you have been with your insurer for a long time, you might be eligible for customer loyalty discounts.
• Security devices: Installing smart home security systems like burglar alarms could earn you a discount. Insurers often reward those who take steps to prevent break-ins and property damage. Make sure to look for systems with professional monitoring and alert services to get the biggest discounts.
• Military and affinity discounts: Some insurance companies offer discounts for military personnel, specific occupations, or memberships (like AAA).
• Quote in advance: Some insurers provide discounts if you request a homeowners insurance quote in Massachusetts at least seven to ten days before you need the policy to start.
• Home Safe program: If you complete the Home Safe workshop offered by the Massachusetts Affordable Housing Alliance (MAHA), you can qualify for various discounts from participating insurance providers. This program helps teach emergency preparedness, fire safety, and other best practices that insurers encourage through further education.

Tips for lowering home insurance rates

When searching for affordable house insurance in Massachusetts, there are a few strategies you can use to get the best rate. 

Here are some tips that you can use to lower your home or property insurance in MA:

• Shop around: Don't settle for the first home insurance quotes in Massachusetts. Explore various insurance providers and get a quote. You might be surprised at the variety of options. Just compare similar coverage levels and options with each company to make a fair comparison.
• Repair your roof: Insurers often ask about the age of your roof when providing a quote. An old or poorly maintained roof can lead to costly claims, so having a newer roof could help you get a lower rate. Many insurance providers may offer a discount if the roof is made of storm-resistant materials.
• Fire prevention devices: Adding smoke detectors, sprinklers, carbon monoxide monitors, fire extinguishers, and fire alarms can reduce homeowners insurance costs. Companies often value systems connected directly to the fire department for quick response. In addition, living close to a fire station can also lower your premiums.
• Increase your deductible: Raising your deductible means you'll pay more out of pocket if you file a claim, but it can also lower your monthly premiums. According to a report, increasing the deductible from $500 to $1,000 can lower insurance premiums by up to 25%. Just ensure the deductible amount is something you can comfortably pay on short notice. 
• Bundle policies: Many insurers offer significant discounts if you purchase multiple policies. This usually applies to homeowners and auto insurance, but you may also get a discount if you add other policies, such as umbrella or renters insurance.

What does Massachusetts home insurance cover?

Homeowners living in New England are exposed to a range of weather or other unfortunate events, such as heavy snowfall, lightning, hurricanes, or even fires.  

Luckily, your standard home insurance in Massachusetts helps cover damages from such events. It also covers theft and vandalism. 

Let's look at what homeowners insurance in MA typically covers.

Dwelling coverage

The dwelling coverage policy helps protect the structure of your home. It typically pays for repairs or the cost to rebuild your house if a disaster covered by your policy damages it. 

However, you should know that most standard homeowners insurance in MA doesn't include damage caused by certain natural disasters, such as floods.

Personal property

This policy helps cover your personal belongings inside your home. 

For example, a bolt of lightning strikes a tree and causes it to crash through your office window and ruin your chair and computer. You can easily replace these items by filing a claim because they're covered under your personal property insurance coverage. 

Liability

Liability coverage protects you if someone is injured on your property. For instance, if a guest falls from your deck stairs and breaks a leg, this coverage helps cover medical and legal expenses if you're sued due to the accident.

Loss of use

If your home in Massachusetts becomes unlivable after a covered disaster, the loss of use coverage policy can help you cover living expenses while you are displaced.

It may include costs for temporary housing, a hotel, or even increased work-related travel expenses due to the loss of your house.

Medical payments

This coverage helps pay the medical bills for people accidentally wounded on your property – whether inside or outside your home. 

The insurance policy applies regardless of who's at fault and is only available to people who are not permanent residents of your home.

Other structures

It helps pay for repairs or replacements of structures on your property other than your home, such as detached garages, fences, or sheds. 

For instance, if a tree falls on a fence or shed, the other structures coverage might help pay for its repair or replacement.

Additional Massachusetts insurance coverage options

While Massachusetts homeowners insurance provides extensive coverage, there may be a few gaps. For example, a typical home insurance policy may not include some major perils, such as floods, including flash floods. 

Without additional coverage, your house could be at serious risk. To protect your Massachusetts home better, consider adding optional coverage tailored to the state's specific needs. 

Flood insurance

Whether home insurance in Boston or Worcester, standard policies don't cover flood damage. 

To protect against this risk, you'd need a separate flood insurance policy from the National Flood Insurance Program (NFIP) or a private insurer. 

Even if you're not in a high-risk flood zone, getting a flood insurance quote is worth it. That's because, over a 30-year mortgage, one in four Massachusetts homes is expected to flood.

Earthquake insurance

Home insurance in Massachusetts doesn't include earthquake insurance. However, you can add it as an add-on to your policy. 

According to a report, 42 US States—including Massachusetts—have a "reasonable chance" of suffering from a damaging earthquake. 

This add-on would help cover repairs or rebuilding costs if an earthquake damages your property, including structural damage and personal belongings.

Identity theft coverage

As our lives become more digital, identity theft is on the rise. 

One report shows that 33% of Americans have experienced some form of identity theft, and Massachusetts ranks 6th in the US for this crime. 

Many insurance providers in the state offer identity theft coverage, which can help cover legal fees and services like credit monitoring after an incident.

Sewer backup coverage

Sewer backups can happen when drains or water lines fail to channel water away from your home, leading to flooding. This occurs more so in basements or crawl spaces. 

Since standard home insurance in MA doesn't cover this kind of damage, you may wish to add it as an endorsement or purchase it as a separate policy. 

According to the Insurance Information Institute, homeowners can easily leverage this policy from insurance companies at a nominal cost, such as $40-$50 per year. 

Umbrella insurance

Umbrella insurance provides extra liability coverage beyond what's included in a standard home insurance policy. 

This is particularly useful for homeowners with major assets, offering additional protection in case of a lawsuit.

What coverage is recommended in Massachusetts

Given the specific risks in Massachusetts, the following coverage options are often recommended:

Flood insurance

Whether it's home or condo insurance in Massachusetts, a typical policy doesn't cover flood damage. 

This particularly concerns those living in areas such as the Connecticut and Merrimack River Valleys or along the coastline. 

It's important to remember that floods can happen outside designated flood zones, so a coverage policy is necessary. 

Scheduled personal property

Also called a floater, rider, or an endorsement, scheduled personal property is an optional coverage you can add to your homeowners, renters, or condo insurance policy. 

This coverage provides additional protection for high-value items. Some commonly scheduled items include:

• Jewelry
• Artwork
• Collectibles (coins, memorabilia)
• Antiques
• Bicycles
• Musical instruments
• Sports equipment (golf clubs)
• Stamp collections 
• Firearms
• Furs
• Health and medical items (prosthetics, hearing aids, wheelchairs)
• Watercraft (including equipment and trailers)
• Expensive electronics (cameras, computer equipment)

Ordinance or law endorsement

Most insurance policies don't cover the extra costs of repairs needed due to changes in Massachusetts homeowners insurance laws or building codes. However, you can purchase additional coverage through an ordinance or law endorsement. 

This endorsement may help cover the extra expenses required to bring your home up to the current codes or ordinances that weren't in place when your home was originally constructed.

Insuring your home in Massachusetts

Whether you have owned a home for years or are a first-time homeowner in The Codfish State, here are a few steps you can use to buy the best homeowners insurance in MA:

• Know your needs: Think about the value of your house, your personal belongings, and specific risks in your area, such as flooding or earthquakes.
• Muster home details: Collect information about your home, such as its age, construction type, size, security systems, roof condition, and special features.
• Determine your coverage: Understand the different types of coverage available, including dwelling, liability, medical payments, personal property, and additional living expenses. Based on your budget, decide on the coverage types and limits you need.
• Get homeowners insurance quotes in Massachusetts: Obtain quotes from at least three insurance providers –online or through a local agent. Ensure the deductibles and coverages are as similar as possible for an accurate comparison.
• Look for discounts: Ensure to check for discounts, such as bundling policies, that can help lower your premium.
• Choose your insurer: Select an insurance company that fits your needs, preferences, and budget.
• Apply and purchase: Based on the provider, you may apply and purchase your policy online or have to work with a representative or local agent.

Is Massachusetts homeowners insurance required by law?

Homeowners insurance in Massachusetts isn't typically required by the state like auto insurance; however, if you have a mortgage, your lender will require you to get a policy. 

Even if there's no mortgage, financial experts recommend home insurance to protect you financially from common losses. This is especially important if you can't afford to pay for repairs or replace your house if it's destroyed.

Still unsure whether to get Massachusetts home insurance or not? 

If so, compare the average home insurance in Massachusetts to the costs you may experience for common 'covered' losses such as water damage from a backed-up sewer, a fire caused by faulty wiring, or a tree falling on your roof. 

Remember, MA homeowners insurance includes liability and personal property, which means your belongings and any legal fees for covered incidents—along with your home's structure—would be covered.