Home Insurance in Massachusetts


UPDATED: NOV 2020 | 2 MIN READ

Massachusetts has some of the highest property values in the country, and due to recent environmental changes, the risk for hurricane and Atlantic storm damage to homes is on the rise. For these reasons, Massachusetts is in the top 10 most expensive states for homeowners insurance. But residents also have a higher level of education – and, as a consequence, higher income levels – which helps balance out the problem of higher homeowners insurance premiums. 

  • Fun fact – The state hero of Massachusetts is a woman named Deborah Samson. She earned her place in history by assuming a male identity so that she could fight in the Revolutionary War.  

Average Rates in Massachusetts

If you’re trying to save money on homeowners insurance in Massachusetts, you may be facing an uphill battle. Out of all 50 states, Massachusetts is #9 on the most expensive list. Although the average American homeowner is paying $1,211 for their homeowners insurance, annual premiums for Massachusetts homeowners are around $1,488. Colorado and Mississippi are some of the states where homeowners are paying more than Massachusetts, whereas residents of Nebraska in Connecticut are getting a slightly better deal on their annual premiums. 

Renters aren’t faring much better, either. While most people who are renting a home or apartment in the US right now are paying about $180 a year further coverage, Massachusetts renters have to pay about $194. It might not sound like much, but if you’re on a tight budget, paying more than you have to can feel pretty burdensome. 

Massachusetts Legal Insurance Requirements

Home insurance is one of many products that isn’t legally required for homeowners – at least, not on the state or the federal level. However, if you’re like the majority of Americans who are paying off a mortgage on their home, your lender will more than likely require it. And it makes sense. After all, technically, they still have a major stake in the home. And they want that investment protected, just as you should, too. 

Common Risk Factors in Massachusetts

Why is homeowner’s insurance so expensive in Massachusetts? Part of the reason is because there are over 11,000 single-family homes which are located in the “Danger Zone” as far as hurricane storm damage is concerned. Most homeowners insurance policies have some semblance of coverage for wind-related storm damage, although more and more insurance providers are allocating separate – and more expensive – deductibles for these specific claims. Be sure to check with your home insurance provider to see if they’re implementing this practice, how high your deductible is, and whether or not it fits appropriately into your budget.

The other big problem for homeowners in Massachusetts is flood damage. Granted, if a leak happens in your home caused by a burst pipe, for example, that’s a type of flood damage that your homeowner’s policy will likely cover. But if it’s some sort of external flooding triggered by a hurricane or a body of water running over, you’re going to have to prepare in advance and purchase coverage from the National Flood Insurance Program or a private insurance company that specializes in flood damage. And if you live in such a high-risk area that you keep getting rejected for conventional coverage, be sure to contact the Massachusetts Property Insurance Underwriting Association (MPIUA) and talk to them about their FAIR Plans. These plans will provide you a fair amount of coverage, but not exactly for a “fair” price. It’s important to shop around and try your hardest to find standard coverage before you utilize this option as a last resort. 

Insurance Demographics/Statistics in Massachusetts

Believe it or not, the potential for severe weather damage isn’t the only factor that determines how expensive your homeowners insurance premiums are. There are a few other important factors you deserve to know about. In Massachusetts, the main ones are:

  • Home Prices – The total value of your home determines how much insurance coverage you will have to purchase in the first place. And the more coverage you purchase, the more your annual premiums will be. Since Massachusetts homes, on average, cost over $430,000, you’re going to be purchasing a lot more coverage than the average American homeowner (who is only paying about $250,000 for their home). And that means you’re going to be purchasing a lot more insurance coverage.
  • Crime Rates – One good thing about owning a home in Massachusetts, though, is that property crime rates are very low. As a matter of fact, in Massachusetts, you only have a 1 in 79 chance of becoming a victim of property crime – as opposed to the national average of 1 and 43. 
  • Income Levels – Having a higher than average income level is one way of getting at least a moderate discount on your homeowners insurance. If your homeowners insurance provider knows you make a lot of money, they can depend on you to pay your premiums on time and never cause them any trouble. And they usually reward customers like you (if you’re like most Massachusetts residents and making $79k per year or more) with better premiums. 
  • Education – One reason Massachusetts incomes are so high probably has something to do with the high rates of education in the state. 43% of adults in Massachusetts have earned at least a bachelor’s degree. When you compare that to the national average of 32%, you can expect those homeowners to be bringing in a higher salary. 

Where To Purchase Home Insurance in Massachusetts

We are proud of what we do here at AgileRates.com and, based on that, strongly recommend that you start your shopping experience with us. Here’s a scary statistic: only 17% of homeowners who are looking for a new homeowners insurance policy will bother to shop around online! Whether you use our website or another quote comparison website, shopping online really does get you the best deal. We only partner with the best that the homeowners insurance industry has to offer, and we show you accurate, affordable quotes so that you can make the best decision about where to buy your policy from.

But even if you don’t shop with us, you should still shop around on a regular basis. A month or two before your next policy renewal date, start asking around to family and friends about home insurance companies they would recommend. Conversely, you could even flip through your phone book and see what offices are available in your area and start calling around. But this may take time and energy you don’t have, which is why we’re here to help. Contact us today or fill out our online form so that we can help you get started saving money.

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