What Massachusetts Homebuyers Need to Know About Rising Homeowners Insurance Costs

Buying a home is one of the biggest financial decisions you’ll ever make—and in Massachusetts, homeowners insurance plays a critical role in protecting that investment. From historic colonials to newer construction, your policy acts as a safety net for both your home and your finances.

According to NerdWallet, a standard homeowners insurance policy typically:

• Covers Repairs and Rebuilding Costs
  If your home is damaged by fire, severe storms, or other covered events, insurance helps pay for repairs—or even a full rebuild if necessary.
  
  
• Protects Your Personal Belongings
  Furniture, electronics, clothing, and even jewelry may be covered if they’re stolen or damaged.
  
  
• Provides Liability Coverage
  If someone is injured on your property, your policy can help cover medical bills or legal expenses.
  
  

That peace of mind is essential—but it’s also becoming more expensive.

Why Homeowners Insurance Costs Are Rising in Massachusetts

Insurance premiums have been climbing nationwide, and Massachusetts homeowners are feeling it too. According to the Insurance Research Council (IRC), several key factors are driving prices higher:

• More Frequent Severe Weather
  Nor’easters, heavy snow, flooding, and coastal storms have led to more insurance claims across New England.
  
  
• Higher Rebuilding Costs
  Labor shortages and rising prices for materials like lumber and roofing have made repairs and rebuilds significantly more expensive.
  
  
• Older Housing Stock
  Many Massachusetts homes are decades—or even centuries—old, which can increase repair costs and insurance risk.
  
  

Together, these factors have pushed premiums higher year over year.

The Good News: The Pace of Increases Is Slowing

While insurance costs are still rising, the rate of increase is beginning to ease, according to ResiClub and Cotality:

• 2023–2024: Premiums increased about 14% per year
  
  
• 2025: Increases slowed to around 10%
  
  
• 2026–2027 (projected): Annual increases closer to 8%
  
  

That’s still an increase—but it’s a more manageable one compared to recent years.

Mortgage Rates Are Helping Offset Higher Insurance Costs

There’s another bright spot for Massachusetts buyers: mortgage rates have been trending downward, which can help balance rising insurance and tax costs.

As Michael Gaines, Senior VP of Capital Markets at Cardinal Financial, explains:

“Rising taxes and insurance do create pressure, but they don’t erase the benefits of a lower rate. A small rate improvement, paired with the right loan program and smart planning, can still make homeownership possible.”

In other words, affordability isn’t determined by one factor alone—it’s about layering smart financial decisions together.

Home Insurance Costs Vary Widely Across Massachusetts

Your homeowners insurance premium will depend on several local factors, including:

• Home price and replacement cost
  
  
• Town or city location (coastal vs. inland)
  
  
• Flood risk and storm exposure
  
  
• Age and condition of the home
  
  
• Coverage limits and deductibles
  
  

A home on the South Shore or Cape Cod, for example, may carry higher premiums than a similar home in Central or Western Massachusetts.

How Massachusetts Buyers Can Save on Homeowners Insurance

Your first insurance payment is usually included in your closing costs, but after that, it becomes a recurring monthly or annual expense. Planning ahead can make a big difference.

Here are proven ways to help lower your premium:

• Shop Around – Compare quotes from multiple insurers licensed in MA.
  
  
• Bundle Policies – Combining home and auto insurance often leads to discounts.
  
  
• Ask About Discounts – You may qualify for savings based on occupation, security systems, or claims history.
  
  
• Highlight Home Upgrades – New roofs, updated electrical systems, and storm-rated windows can reduce costs.
  
  
• Improve Your Credit Score – Better credit can lead to lower insurance premiums in Massachusetts.
  
  

Bottom Line

If you’re planning to buy a home in Massachusetts, homeowners insurance should be part of your budget from day one.

While premiums are rising, understanding what’s driving those costs—and knowing how to shop smart—can help you plan confidently. This is one area where cutting corners isn’t worth the risk. Your home is likely your biggest investment, and protecting it properly is essential.