Flood Insurance Costs & Coverage in Massachusetts – ValuePenguin
In massachusetts, the average flood insurance premium is $1,294 per year. This average represents all active federally sponsored flood insurance policies in the Bay State. If your home is located in one of the Special Flood Hazard Areas identified by the Federal Emergency Management Agency’s (FEMA) flood mapping system, then your mortgage lender may require you to purchase flood insurance coverage.
average cost of flood insurance in massachusetts
Bay residents with flood insurance pay an average of $1,294 a year for coverage of about $260,000. However, National Flood Insurance Program (NFIP) rates are based on whether your property is located in a high risk flood zone as defined by fema. This means your NFIP flood insurance quote could be much higher or lower than the overall state average.
As an example, consider the difference in average flood insurance premiums between Boston and Brockton. in both cities, the average amount of coverage is close to $275,000. However, Bostonians pay an average annual cost that is less than half of what Brockton homeowners pay. This is because insurers estimate a higher risk of flood damage in Brockton than in Boston. The table below lists the differences in flood insurance costs and coverage limits in major cities in Massachusetts.
Please note that these numbers apply to NFIP-sponsored flood insurance. Federal law regulates the cost of flood insurance that is backed by the NFIP, which means you’ll see the same rates regardless of which insurer or agent provides the quote. If you’re not happy with the cost of NFIP insurance or don’t qualify for federally-backed coverage, you’ll need to find a private insurer that sponsors its own flood policies.
when is flood insurance required in massachusetts?
massachusetts state law does not require flood insurance coverage, but mortgage lenders often do so to limit their own risk. Flood insurance often becomes the coverage required by the mortgage borrower if your property is located within a special flood hazard area (SFHA) as outlined in FEMA’s flood insurance rate map for your neighborhood. sfhas are more likely to flood due to low elevation or proximity to open water.
fema updates its rate maps as new data becomes available on an ongoing basis, so even existing homeowners are sometimes placed in new sfhas and required to purchase flood insurance for the first time. If you believe your property does not belong to a newly created SFHA, you and your mortgage lender can jointly file a Letter of Determination Review (LODR) with FEMA. It will take up to 45 days for the agency to decide if your home has been zoned correctly.
Even if FEMA revises your zoning at your request, your mortgage lender can still exercise its right to require flood insurance as a condition of your loan.
flood insurance companies in massachusetts
Insurance companies offer flood insurance in two forms. Most of the time, they act as participants in the NFIP, meaning they sell and service federal flood insurance, but they don’t set rates, profit from premiums, or pay claims with their own money. Less often, private insurers will sponsor and sell their own flood insurance policies. these private policies can sometimes cost less than an nfip policy, particularly if you face special circumstances, such as being recently rezoned.
Most insurance companies and agents can help you get started finding an NFIP flood insurance policy, but it can be more difficult to find private coverage. One place to start looking is with surplus line insurance companies, which provide specialized coverage beyond what regular home insurance companies can provide. Below is a list of insurers licensed to sell surplus lines insurance in Massachusetts.