Homeowners Insurance Companies in Massachusetts

If you’re buying a home, sometimes you need homeowners insurance because of your mortgage lender’s rules. Even if you don’t have to, getting insurance can help you feel better knowing your home and anyone injured there is covered. People all over Massachusetts, from Boston to Cape Cod, are looking for the best insurance companies.

Want to keep your home safe? We’ve got a simple guide about five best homeowners insurance in Massachusetts. Keep reading to see what each company offers, the good points, and the not-so-good points. 

What Factors Affect Home Insurance Rates in Massachusetts?

The cost of home insurance in Massachusetts is influenced by various factors, helping insurers gauge the risk associated with your home:

What Factors Affect Home Insurance Rates in Massachusetts?
  • Claims History: If you’ve made claims in recent years, you might face higher rates. Conversely, if you haven’t, you could get a discount.
  • Credit Score: Insurers use a specialized “credit-based insurance score”. A higher score can mean lower rates, while a low score might increase them.
  • Location: Living in areas prone to natural disasters or with high crime rates can raise your premium. Similarly, homes farther from emergency services might have higher costs.
  • Replacement Cost: This is an estimate of what it’d cost to rebuild your home. It’s based on your home’s size, age, style, and local construction costs.
  • Home Age: Older homes can be more expensive to insure due to the use of outdated materials and potential wear and tear.
  • Condition: The state of your home matters. For example, an old or damaged roof can increase your premium.
  • Discounts: Bundling multiple insurance policies, like home and auto, can lead to savings.
  • Security Features: Homes with security systems, sprinklers, or other safety features often qualify for discounts.
  • Renovations: Recent remodeling can change your home’s value, potentially impacting your premium.
  • Dog Breed: Some breeds, viewed as high-risk, can affect your insurance cost or eligibility. However, insurers often focus on an individual dog’s behavior rather than breed.
  • Policy Choices: The coverage amount, added endorsements, and your deductible can all change your rate. While a higher deductible can reduce your premium, it also means paying more when you claim.

5 Best Homeowners Insurance Companies in Massachusetts

We’ve done our homework at Guides Home Team and here’s our list of the top insurance providers in Massachusetts:

  • Liberty Mutual: Best for discounts
  • Allstate: Best for extra coverage
  • Travelers: Best for saving on deductibles
  • USAA: Best for military folks
  • Lemonade: Best for quick claim handling

Based on 2023 data, the usual cost for home insurance in Massachusetts is $2,274.92. This is a bit cheaper than the US average of $2,417.

Liberty Mutual

  • AM Best Rating*: A
  • J.D. Power Rating: 789/1000
Liberty Mutual

Why We Chose Liberty Mutual

Liberty Mutual has been insuring homes for over 110 years and has an “Excellent” rating from AM Best. They offer insurance for homes, cars, businesses, and renters, which means you can bundle different policies together.

Getting a quote from Liberty Mutual can be a bit tricky compared to others. Their online tool asks for things like your full Social Security number and specific home details, which not all companies do. But if you get stuck, they have online chat and phone help.

What’s cool about Liberty Mutual is they give extra discounts. For example, if you buy a new policy before your old one ends or if you shop online. Plus, they give you a price break if you insure your home for its full value.

Pros and Cons

Pros

  • Offers coverage that changes yearly to balance out inflation.
  • Gives a 10% discount for buying a policy online.
  • Has live-chat and phone support for helping with quotes.

Cons

  • Doesn’t have as many extra coverage choices as other companies.
  • Scores lower in customer happiness according to J.D. Power.

Discounts and Endorsements

Discounts 

  • Liberty Mutual gives price cuts if you have safety things like smoke alarms, fire gear, sprinklers, anti-theft, and water safety measures.
  • They also offer discounts if you haven’t made any claims, just bought a house, recently fixed or built your home, bundle multiple policies, choose certain payment methods, go paperless, insure your home for its full value, have a new roof, or shop early.

Extras (Endorsements)

  • Liberty Mutual lets you add options to your policy. These include covering the full cost of rebuilding your home, protection against rising costs (inflation), storm damage (hurricanes), water backup, and special items like jewelry.

Allstate

Allstate

Why We Chose Allstate

Allstate is a top-rated company, getting an A+ from both AM Best and the Better Business Bureau. It’s not just popular online; it’s also the second-biggest insurance company in the US, so it’s got strong money support.

Allstate is big on helping customers learn. Their website has cool tools like a calculator to see if it’s cheaper to rent or buy and a tool that shows common and expensive insurance claims in your area.

If you’re worried about increasing prices after making a claim, Allstate has something called Claim Rateguard. This keeps your rate steady even after you file a claim.

Pros and Cons

Pros

  • They have a tool to help you determine how much your stuff is worth.
  • They have many local agents around, so you can get help nearby.
  • They give many automatic discounts.

Cons

  • They don’t offer as many ways to customize your coverage compared to other companies.
  • Their prices can be higher than what other companies charge.

Discounts and Endorsements

Discounts

  • Allstate gives you a big discount (up to 25%) if you bundle it with car insurance.
  • They reward you if you always pay on time or pay in full.
  • Switching to Allstate without any recent insurance claims gets you a discount.
  • You’ll save if you pay using direct deposit (Easy Pay Plan).
  • Signing up early or being a new homeowner? That’s a discount.
  • They also offer reductions if you have safety devices in your home.

Extras (Endorsements)

  • Allstate has many add-ons for your policy. These include coverage for your yard and garden (twice, might be a repetition), if you share your home (like Airbnb), special personal items, water backup, musical instruments, help if someone steals your identity, sports gear, flood protection, stuff for your business, recovering electronic data, making green improvements to your home after damage, covering mobile homes, and extra broad coverage (personal umbrella insurance).

Travelers

Travelers

Why We Chose Travelers

Travelers is a top choice for home insurance in Massachusetts because they let you pick from nine different amounts you’d pay first (deductibles) when you have a claim. This means you can tailor your coverage and price. They’ve got the best financial rating (A++) from AM Best, so you can trust they’re stable.

You can talk to Travelers anytime, day or night, if you need to make a claim or have questions. Plus, they have an app to make things even easier.

One cool thing they offer is the Decreasing Deductible. Every year you renew with them, they cut your deductible by $100. This happens even if you had claims the year before.

Pros and Cons

Pros

  • They let you choose how much coverage you want for your belongings, from a quarter up to the full value of your home.
  • They offer extra coverage for appliances that break.
  • Every year, they reduce your deductible, even if you made a claim recently.

Cons

  • They don’t cover mobile or manufactured homes.
  • They don’t offer as many discounts as some other companies.

Discounts and Endorsements

Discounts

  • Travelers gives discounts if you recently bought a home, have safety devices, haven’t had claims, have a green (eco-friendly) home, or bundle different policies together.

Extras (Endorsements)

  • With Travelers, you can add more coverage for things like jewelry, extra costs if your home needs rebuilding, water backup problems, special belongings for various damage causes, identity theft, overflow from a sump pump, specific items, and eco-friendly home repairs.

USAA

USAA

Why We Chose USAA

USAA is an insurance company dedicated to serving U.S. military members, veterans, and their families. They provide a variety of discounts and advantages tailored to this group. Alongside standard coverage, USAA offers benefits like inflation protection and special card coverage. Moreover, they extend banking and financial perks to their members. Despite their comprehensive offerings, their policy rates remain competitive.

Customer feedback underscores USAA’s value, with J.D. Power highlighting its near-flawless satisfaction rating. Furthermore, our studies indicate that USAA’s prices are often below the national average, making it a compelling choice for eligible individuals.

Pros and Cons

Pros

  • Provides member-only benefits including travel deals, banking, and financial services.
  • Offers discounts when combining with other insurance types like auto and life.
  • Includes options for flood and earthquake coverage.

Cons

  • Exclusive to current or former military personnel and their families.
  • Lacks local representatives for face-to-face support.

Discounts and Endorsements

Discounts

USAA provides multiple ways to save, including discounts for bundling policies, long-term loyalty, timely payments, not making claims, and having a newer home. Homes with resilient roofs or security devices get additional savings.

Endorsements

On top of regular home insurance, USAA offers extra protection like umbrella coverage for damages to others’ property, flood coverage, insurance for valuable items, and business insurance.

Lemonade

  • AM Best Rating: NR*
  • J.D. Power Rating**: N/A
Lemonade

Why We Chose Lemonade

Since its launch in 2015, Lemonade has stood out with its innovative, app-based approach, aiming to settle straightforward claims like stolen patio furniture almost instantly. Though Lemonade hasn’t yet received a J.D. Power rating for homeowners insurance due to its smaller presence, it’s noteworthy that they ranked first for renters insurance in the J.D. Power 2021 U.S. Home Insurance Study.

Offering a range of coverage options, discounts, and policies for pets, cars, renters, and life, Lemonade delivers flexible policies and digital-first customer service.

Pros and Cons

Pros

  • Leveraging AI technology, Lemonade provides a swift and digital experience for both signing up and making claims.
  • Its rates are typically more affordable than many competitors.
  • With an FAQ page and clear explanations for each coverage type during quoting, it’s easy for customers to grasp their policies before buying.

Cons

  • Unlike some established insurers, Lemonade doesn’t have a network of local agents.
  • Sometimes, the claims process might ask customers to record and upload a video showcasing the damage.

Discounts and Endorsements

Discounts

Lemonade rewards homeowners with discounts for safety additions like fire and smoke alarms, fire extinguishers, burglar alarms, and storm shutters. Moreover, choosing an annual payment or pairing home insurance with a Lemonade pet policy can lead to more savings.

Endorsements

Beyond standard coverage, Lemonade provides options to cover pool liability, water backups, and oil tanks. They also cater to personal items, including jewelry, art, musical instruments, bicycles, and cameras.

Causes of Home Insurance Claims in Massachusetts

In Massachusetts, homeowners frequently claim insurance for issues like water damage, frozen and burst pipes, and storm effects.

  • Water Damage: Broken pipes or drain failures in Massachusetts often lead to significant water damage, affecting walls, ceilings, appliances, and even causing mold.
  • Frozen Pipes: The cold Massachusetts winters sometimes result in pipes bursting, leading to expensive repairs and added water damage.
  • Storm Damage: Massachusetts is among the top states vulnerable to tropical cyclones, facing risks from high winds, heavy rain, and storm surges. Such storms can damage home exteriors, especially roofs. The state is also susceptible to severe thunderstorms and tornadoes.
  • Ice Dams: After heavy snowfalls, water can freeze and thaw on roofs, creating ice dams. These can cause leaks, damage insulation, and affect the interior walls.

How to find the best cheap home insurance in Massachusetts

Looking for affordable home insurance in Massachusetts? Here are some easy tips to get a good deal:

  • Shop Around: Get quotes from several insurers. Make sure to compare the same types of coverage to see who offers the best price.
  • Check Your Roof: Insurers prefer newer, well-maintained roofs. If it’s storm-resistant, you might even get a discount.
  • Adjust Your Deductible: If you choose to pay a higher amount when making a claim, your monthly payment could be lower. Just make sure you can afford it.
  • Bundle Up: Many companies give discounts if you buy more than one type of insurance from them, like home and car insurance together.

Frequently Asked Questions

Do you need homeowners insurance in Massachusetts?

In Massachusetts, the law doesn’t force you to have home insurance. But if you have a mortgage, your bank or lender might require it. Still, the Massachusetts Division of Insurance suggests that everyone think about getting insurance for their home.

Is homeowners insurance based on property value in Massachusetts?

Homes aren’t insured based on how much they’re worth in the market. Instead, insurance focuses on the cost to rebuild the house and replace everything inside. Using the property’s full value, which includes the land, wouldn’t give the right insurance estimate.

What is not covered by homeowners insurance?

Different insurance policies and companies might have specific exclusions, but there are usual patterns. For instance, standard policies often don’t cover flood or earthquake damage. However, you can sometimes add these coverages separately. You can also get flood insurance from the government-supported National Flood Insurance Program or from private insurers. Damage due to neglect or bad upkeep is usually not included.

Always check the details of a policy to know what’s covered and what’s not before you sign up.

What percent of home value is Massachusetts homeowners insurance?

Generally in the home insurance world, there’s an 80% rule. This means you should have insurance that covers at least 80% of your home’s total replacement cost. So, if you only insure your home for 20% of its value, you shouldn’t expect the insurance to foot the bill for repairs. Different companies might have slight variations, but this 80% rule is a standard.

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