A Guide to Homeowners Insurance Options Across Property Types in Massachusetts

Owning a home in Massachusetts is both rewarding and challenging. With low inventory, property prices in the state keep rising.

Data show that the median sale price of single-family homes in Massachusetts rose to nearly $1 million in May 2025. Similarly, condominium listings are up 30%, with the median sale price at a record $732,000.

A key responsibility of owning a home is making sure the property has adequate insurance coverage. Different property types, such as single-family homes, condominiums, and multi-unit buildings, face unique threats that affect how insurance coverage should be structured.

Understanding the nuances of these risks and the range of available coverage options is essential to protecting your investment.

Understanding Massachusetts Homeowners Insurance Options

When exploring coverage, it is essential to look at the full spectrum of Massachusetts homeowners’ insurance options. Insurance coverage can differ based on the kind of property, where it is located, and the risks tied to that location and structure.

Homeowners should consider how factors such as flood zones, proximity to fire services, and age of the structure influence premiums and coverage levels. For instance, cities like Boston, Plymouth, and New Bedford are located in high-risk flood zones. As a result, flood insurance plays an important role for various property types in these areas.

However, Berlin Insurance Group states that homeowners' insurance does not cover flood damage. Therefore, it is important to obtain a separate policy with basic coverage to meet comprehensive needs.

Massachusetts, with its coastal areas and historic neighborhoods, requires policies that are tailored to local conditions. In fact, some insurers may not even cover certain properties in the state. Therefore, Massachusetts has seen a noticeable increase in enrollment in its insurer of last resort, the FAIR Plan.

After years of decline, FAIR plan insurers increased to 173,000 policies in fiscal year 2024. It was the first-ever increase since 2017 and the largest single-year jump since 2007. Experts attribute these growth challenges in the private market to the fact that more homeowners are unable to secure coverage through traditional insurers.

Single-Family Homes

Single-family homes are the most common property type in Massachusetts and generally have the broadest range of insurance options. Coverage typically includes protection against fire, theft, and vandalism, along with liability coverage, and additional endorsements for natural disasters such as windstorms or ice damage.

It is also important to understand if the insurance covers fire damage caused by mistake. For instance, when melting ice on the roof with a blowtorch, a homeowner accidentally set his house on fire.

The fire began near the front corner where he was working and quickly spread into the attic. No injuries were reported, but authorities used the incident to stress the dangers of using open-flame tools for snow and ice removal.

In such situations, insurance does cover the damage if it was an honest mistake. However, intentional arson mitigates all coverage.

Policies for these homes can be customized with optional coverages, such as replacement cost protection or home office liability. Premiums often reflect the property's size, age, and construction quality.

Condominiums

Condos present a different set of challenges. While the building’s structure is usually covered by a master association policy, the individual unit owner must insure personal belongings and the interior of their unit. Liability coverage is also critical, as it protects against accidents that occur inside the condo.

For instance, condo residents at Washington Park in Andover, Massachusetts, were forced out of their homes after losing heat and hot water. The homeowners' association said that the fix would take time and that the residents should look for temporary housing elsewhere. However, it won’t cover temporary housing costs, leaving owners to file claims with their own insurance or the utility.

The situation highlights how master insurance policies typically cover building structure and common areas, while individual condo owners need separate policies. This can include HO-6 or renters insurance to cover interior damage, temporary living expenses, or loss of use. Without the right coverage, many costs from displacement may fall on owners.

Massachusetts homeowners' insurance for condos often includes loss assessment coverage. It helps cover the homeowner’s share of unexpected expenses assessed by the association. Understanding what the association covers versus what the owner needs to insure is key to avoiding gaps in protection.

Multi-Unit Properties

Multi-unit properties, such as duplexes or small apartment buildings, combine elements of both personal and rental insurance. Owners must cover the building structure while also protecting against liability for tenants.

Massachusetts policies for multi-unit properties often account for higher risks due to increased occupancy and tenant activity. Some policies include rental income protection to help offset lost earnings if a covered incident makes the property unlivable.

Ownership of the property also affects the coverage options. Boston’s mayoral office announced a new co-purchasing housing pilot program. It allows middle-income residents to buy multi-family homes by allowing friends, family members, or other households to pool resources and receive zero-interest loans.

The aim was to expand shared ownership opportunities and build wealth while competing with real estate investors. The effort, introduced as part of broader housing affordability initiatives, requires participants to be first-time buyers who will live in the property.

For such properties, the homeowners' insurance policy must reflect the shared ownership structure. All co-owners should be listed as named insureds on the policy so everyone has legal protection in the event of a claim. If only one person is listed and a loss occurs, it can lead to disputes over payouts or even to claim denials for the other owners.

Frequently Asked Questions

Does homeowners' insurance change if part of the home is used for business purposes?

Using part of a home for business, such as a home office or client-facing workspace, can affect coverage. Standard homeowners’ insurance may limit or exclude business-related losses. Some insurers offer endorsements for home-based businesses, while others require a separate policy depending on the type of work and equipment involved.

How do claims affect future homeowners' insurance rates in Massachusetts?

Filing a claim can influence future premiums, especially if claims are frequent or related to preventable damage. While one claim may not cause a sharp increase, multiple claims over a short period can raise rates or make it harder to secure coverage. Insurers also consider the type of claim, such as water damage versus theft.

Is flood insurance required for all Massachusetts homeowners?

Standard homeowners' insurance policies typically do not include flood coverage. It is usually required only if the property is in a high-risk flood zone and has a federally backed mortgage. Even outside mapped flood zones, some homeowners choose flood coverage due to increased risk from storms and heavy rainfall.

Homeowners in Massachusetts have a variety of insurance options to suit different property types, each with unique considerations. Whether protecting a single-family home, a condo, or a multi-unit building, understanding the differences in coverage and potential risks ensures financial security and peace of mind.

By carefully evaluating Massachusetts Homeowners Insurance Options and tailoring policies to specific needs, property owners can safeguard their investments against unforeseen events.