Massachusetts has one of the highest costs of livings in the country as measured by the Consumer Price Index. So it's no surprise that home insurance rates are also steep. Fortunately, in 2008, Massachusetts did something it had not done in over 30 years—it deregulated the auto insurance market. This in turn, has brought more insurance companies into the state. More companies equal more competition equals lower rates in all lines of coverage including Massachusetts house insurance. The average homeowner's premium in 2008 was $1,065. And while this is still high relative to the U.S. average, there are ways to save on your Massachusetts home insurance rates. The first is to be educated about what you need. The second is to comparison shop.

What You Need to Know About Massachusetts Home Insurance?

Today's most popular policy is called an HO-3 and contains the following coverage at varying amounts.

  • Damage to your dwelling from named perils like fire, lightning, etc.
  • Damage to your personal property. Coverage is typically 50% of the dwelling amount.
  • Liability protects you against civil suits when others are injured on your property.
  • Medical Payments pay for medical expenses when others are injured on your property.
  • Additional Living Expenses pay for you to live elsewhere when your home is unlivable. This is usually 20% of your dwelling coverage.

Dwelling Coverage- you'll need to know the amount to insure your home. This isn't the market value, tax assessed value or your mortgage balance. It's what it cost to rebuild based on today's construction costs usually calculated based on a cost per square foot. It doesn't include your land or foundation.

Actual cost value (ACV) vs. replacement cost- ACV usually applies to personal property coverage and takes depreciation (age, wear, tear) into consideration when calculating for a loss. Replacement cost—usually purchased at a higher premium—replaces, repairs, or rebuilds using the same or similar materials without considering depreciation.

Hurricane/Wind Deductible- If you live on the coast, you may have a separate deductible for hurricanes and wind, usually expressed as a percentage of the dwelling coverage. For example, $200,000 in dwelling with a 2% deductible would be $4,000.

Flood Policy- This coverage is always separate from a regular policy.

What Affects My Massachusetts House Insurance Rates?

A number of things like:

  • Amount of Coverage
  • Deductible Amount- the higher the deductible, the lower the rate. Significant deductions start at the $1,000 deductible level.
  • Type of Construction- brick/masonry is less expensive to insure than wood.
  • Location of Home- is it on a flood plain, on the coast, etc. These things increase risk and your premium.
  • Local Fire Protection- How close your home is to fire hydrants and how far the nearest fire station is all determine rate.
  • Age of the Home- newer homes offer fewer chances for claims.
  • Past Loss Activity- how many claims you filed.
  • Discounts.see below.

Lowering Your Massachusetts House Insurance Rates
You can significantly lower your Massachusetts home insurance rates by knowing what discounts are available. Here is a short list of potential discounts: dead-bolt locks, smoke detectors, fire extinguishers, automatic sprinklers, burglar/fire alarms, new plumbing/wiring, multi-line (auto & home), prepayment vs. monthly/bi-monthly, payroll deduction, military, new home, non-smoker, senior (55+). And finally, the best way to save on your Massachusetts home insurance rates is to comparison shop. Let LocalInsurance be your comparison shopper. They'll search the web looking for the best values from agents in your area. It's free, easy and takes just minutes.

If you are interested in learning more about Massachusetts home insurance, there are a number of resources that are offered by the state. Massachusetts has a Department of Insurance which can help ensure that you have the appropriate coverage for your home and provide you with useful information when selecting a homeowners insurance policy.