Massachusetts Homeowners Insurance Guide

In many ways, residents of Massachusetts are very fortunate. They live in a state with tremendous historical significance and picturesque coastal beauty. Massachusetts homeowners also face some of the highest property values in the country, which is both a blessing and a curse. On the one hand, high property values make Massachusetts homes a lucrative long-term investment. On the other hand, high property values also correlate with higher homeowners insurance premiums. In fact, according to the National Association of Insurance Commissioners, Massachusetts has the 8th highest homeowners insurance premiums in the country. Such expensive premiums make insuring Massachusetts homes a challenge in some cases, but obtaining affordable coverage is still possible. In what follows, we’ll give you the most important information you’ll need in order to insure your Massachusetts home.

Why You Need Massachusetts Home Insurance

Massachusetts law does not require homeowners insurance, but this does not diminish the necessity of coverage. Your home is your most valuable asset, and it doesn’t make sense to leave such an asset unprotected. Without homeowners insurance, a single unfortunate event, such as a fire or a hurricane, could wipe out the enormous investment you’ve made in your home. Compared to the level of protection it provides, Massachusetts home insurance is relatively inexpensive and could save you from financial ruin. Homeowners insurance is so important to protecting your investment, in fact, that many mortgage lenders require borrowers to purchase coverage before they can qualify for home loans.

Five Components of a Homeowners Policy

All standard Massachusetts homeowners policies will have five coverage components, each of which we’ve outlined below.

1. Real property damage. This coverage protects homeowners against damage to the actual structure of their property. Most policies will also cover damage to detached structures, such as sheds, garages, etc.
2. Personal property damage. Covers losses to the personal belongings you keep in your home.
3. Additional living costs. Pays for your food and lodging while your home is being repaired or replaced after a covered loss.
4. Liability. Covers claims resulting from property damage or bodily injury any member of your household causes another.
5. Medical payments. Pays for the medical expenses of persons who do not live with you who suffer accidental injuries on your property. Most medical payments coverage applies regardless of fault. Not all homeowners insurance policies include this coverage.

Alternative Coverage Options

If you cannot obtain Massachusetts home insurance from a traditional insurer because of the risk you represent, you might need to take advantage of the state’s FAIR Plan. The FAIR Plan, sponsored by the Massachusetts Property Insurance Underwriting Association, is a program created by the state’s statutes that offers homeowners a last-resort option for home insurance. Under the FAIR Plan, Massachusetts homeowners can obtain insurance if they have been denied coverage from licensed home insurers as long as they fit the plan’s criteria. If you’re interested in the FAIR Plan, contact the Massachusetts Department of Insurance for more information.