The typical annual flood insurance premium in Massachusetts is $1,294. This average takes into consideration all of Bay State’s active federally sponsored flood insurance plans. Your mortgage lender can compel you to buy flood insurance if your home is situated in one of the designated exceptional flood hazard regions by the Federal Emergency Management Agency’s (FEMA) flood mapping system.
Boston Harbor and Cape Cod Bay are just a couple of the famous shoreline features of Massachusetts. However, flooding is a concern that comes with all that coastline. Although flood damage can be extremely costly, many homeowners are unaware that flooding is not typically covered by home insurance.
In order to be covered, you’ll probably need to buy a separate flood insurance policy. Homeowners in Massachusetts should be aware of their insurance coverage alternatives because the state has a high risk of flooding damage. Having a suitable policy could protect you from the terrible financial repercussions of flood damage, according to Bankrate’s explanation of Massachusetts flood insurance.
Cost of flood insurance in Massachusetts
Your individual rating variables will determine the cost of your flood insurance policy, however, the NFIP states that the typical rate is $700 per year. By entering your address into the FEMA’s flood map, you may find out what flood zone your home or other property is in and thus what your flood insurance rates are in Massachusetts.
Your likelihood of paying more for a policy increases with the likelihood of flooding in your neighborhood. Flood insurance may be fairly pricey in high-risk areas and may even be more expensive than the cost of your home insurance.
When calculating your premium, your provider will additionally take into account the following factors:
- the layout of your home
- your home’s age
- Location of the utilities in your house
- Cost of insurance Deductible cost
Obtaining an elevation certificate, which attests that your home’s elevation is above the typical floodwater height for your area, might help you save money on your flood insurance.
Massachusetts flood insurance laws
Although Massachusetts does not mandate that homeowners purchase flood insurance, mortgage lenders frequently do, particularly if you live in a high-risk flood zone. Despite the fact that coverage is not mandated by law, the state does place various restrictions on mortgage companies requiring coverage:
- Mortgage lenders are only allowed to mandate flood insurance up to the loan’s principal amount.
- Mortgage lenders are not permitted to demand contents insurance
- Mortgage companies aren’t allowed to demand deductibles below $5,000, but policyholders with smaller deductibles are still accepted.
- Each year, the homeowner can seek a reduction in the dwelling amount on their flood insurance policy to reflect the current mortgage principal balance.
When to purchase flood insurance
You are not legally required to have flood insurance under Massachusetts’s homeowner’s insurance rules. However, if you have a mortgage, your lender would probably demand it if your house is in an SFHA, which is a low-lying area with a high risk of flooding.
It’s usually advisable to get flood insurance as soon as you purchase a house in a flood zone, and you’ll generally need to provide proof of coverage before your loan can be approved.
If you don’t have flood insurance but are concerned about an impending storm, you’ll probably still be able to get it, but bear in mind that there is typically a 30-day waiting period before coverage kicks in.
Fortunately, there are situations where you can skip the 30-day waiting period.
You have 13 months to get flood insurance without a 30-day waiting period if you’re doing so because your area’s flood map has altered and shown that your home is at risk. There is simply a one-day waiting time if you do this.
There is no 30-day waiting period when buying flood insurance if you have bought, renewed, increased, or extended a house loan.
How do I get flood insurance in Massachusetts?
In MA, there are two ways to purchase flood insurance. The National Flood Insurance Program is one them (NFIP). You can get flood insurance coverage via a nearby insurance company if your home, apartment, condo, or commercial property is situated in a community that participates in the National Flood Insurance Program (nearly all MA municipalities are on this list).
You can still purchase flood insurance from a private firm even if your property is not situated in one of these participating locations. Additionally, even if your property is eligible for the NFIP, you might want to consider a private option (see below). Which choice makes the most sense for you? Ask your MA insurance company.
How can I purchase affordable flood insurance in Massachusetts?
By requesting a price for private flood insurance rather than using the NFIP, you might be able to save money. There is no need to wait for a callback or an email because the entire process is online! Compare your quote to what you would pay through the NFIP once you get it. To avoid being surprised by what is and isn’t covered when you try to submit a claim, check what the NFIP covers in addition to the charges.
The expense of filing a flood insurance claim can be high; those without coverage often experience financial ruin following a storm. In Massachusetts, the average NFIP claim for flood damage over the last ten years has been $18,600.
Bay Staters with flood insurance spend, on average, $1,294 year for coverage of around $260,000. The National Flood Insurance Program (NFIP) rates, however, are determined by whether your property is located in a FEMA-designated high-risk flood zone. Accordingly, your NFIP flood insurance quote may be significantly more or cheaper than the state’s average.
Think of the variation in typical flood insurance rates between Brockton and Boston as an illustration.
The typical coverage amount in both locations is nearly $275,000. However, the average annual cost paid by Boston residents is considerably lower than that of Brockton homeowners. This is because Brockton has a larger chance of flood damage than Boston does, according to insurers. The prices and coverage limits for flood insurance in significant Massachusetts cities are broken down in the table below.
Flood insurance companies in Massachusetts
Two types of flood insurance are provided by insurance firms. Most of the time, they perform their duties as NFIP participants, which means that they offer federal flood insurance and provide customer service but do not control prices, make money from premiums, or cover claims with their own funds. Private insurers sponsoring and marketing their own flood insurance plans are less frequent.
In some cases, these private plans can be less expensive than NFIP policies, especially if you have unique circumstances like having recently changed zones.
Acquiring private coverage could be more challenging, but the majority of insurance companies and brokers can get you started on the path to finding an NFIP flood insurance policy. Surplus line insurance companies, which offer specialist coverage above and beyond what typical house insurance companies can, are a good location to start your search. A list of Massachusetts-authorized insurance companies that sell surplus line insurance is shown below.
- AIX Specialty Insurance
- Coverys Specialty Insurance
- Ironshore Specialty Insurance
- Lexington Insurance
- Liberty Surplus Insurance
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