Flood Insurance Costs & Coverage in Massachusetts

The average flood insurance premium in Massachusetts is $1,294 per year. This average includes all federally sponsored flood insurance policies in effect in Massachusetts. If your home is in a special flood hazard area identified by the Federal Emergency Management Agency's (FEMA) flood mapping system, your mortgage lender may require you to purchase flood insurance.

Average cost of flood insurance in Massachusetts

Flood insurance in the Bay State costs an average of $1,294 per year for about $260,000 in coverage. The National Flood Insurance Program (NFIP) rates, on the other hand, are determined by whether your property is located in a high-risk flood zone as defined by FEMA. As a result, your NFIP flood insurance quote could be significantly higher or lower than the state's overall average.

Consider the disparity in average flood insurance premiums between Boston and Brockton. The average coverage amount in both cities is close to $275,000. However, Bostonians pay less than half of what Brockton homeowners pay on an annual basis. This is because insurers calculate a higher risk of flood damage in Brockton than in Boston. The table below compares flood insurance premiums and coverage limits in major Massachusetts cities.

It should be noted that these figures apply to NFIP-sponsored flood insurance. The cost of flood insurance backed by the NFIP is regulated by federal law, which means you'll see the same rates regardless of which insurer or agent provides the quote. If you are unhappy with the cost of NFIP insurance or do not qualify for federally backed coverage, you must look for a private insurer that sponsors its own flood policies.

When is flood insurance required in Massachusetts?

Although Massachusetts state law does not require flood insurance, mortgage lenders frequently purchase it to mitigate their own risk. Flood insurance is frequently required coverage for mortgage borrowers if their property is located within a special flood hazard area (SFHA) as defined on FEMA's flood insurance rate map for their neighborhood. Because of their low elevation or proximity to open water, SFHAs are more likely to flood.

FEMA updates its rate maps on a rolling basis as new data becomes available, so even existing homeowners are sometimes placed in new SFHAs and required to purchase flood insurance for the first time. If you and your mortgage lender believe that your property does not belong in a newly created SFHA, you can file a letter of determination review (LODR) with FEMA. The agency may take up to 45 days to determine whether your home has been properly zoned.

Even if FEMA changes its zoning at your request, your mortgage lender may still require flood insurance as a condition of the loan.

Flood insurance companies in Massachusetts

Flood insurance is available from insurance companies in two forms. They mostly act as NFIP participants, which means they sell and service federal flood insurance but do not set rates, profit from premiums, or pay claims with their own money. Private insurers will rarely sponsor and sell their own flood insurance policies. Private policies can sometimes be less expensive than NFIP policies, especially if you have special circumstances, such as being recently re-zoned.

Most insurance companies and agents can assist you in finding an NFIP flood insurance policy, but private coverage may be more difficult to find. One place to start looking is with surplus line insurance companies, which offer specialized coverage in addition to what standard home insurance companies can offer. A list of insurers licensed to sell surplus line insurance in Massachusetts is provided below.

• AIX Specialty Insurance
• Coverys Specialty Insurance
• Ironshore Specialty Insurance
• Lexington Insurance
• Liberty Surplus Insurance