A typical Massachusetts homeowners’ policy is written through Farmers, State Farm, Allstate, and Progressive, for instance, excludes flooding as something that will be covered under their homeowner’s policy.
In most cases, the only way to get flood coverage is by purchasing a stand-alone flood insurance policy. However, you should ask your homeowners agent if you can add an endorsement to your homeowner’s policy to cover flooding. Yet, don’t be too surprised if the answer is NO.
FEMA flood zone maps often take years to go into effect after the terrain is studied. This gives the impression that the area is “more up to date” than it is.
The average cost for Massachusetts flood insurance in these Low-risk areas is $595 per year.
FEMA’s National Flood Insurance Program (NFIP) and all federally backed lenders rely on these Massachusetts flood insurance maps to assess risk, set premiums, and determine who is required to purchase flood insurance. Bad information about an area’s flood risk can leave property owners under or uninsured.
How much is flood insurance in Massachusetts?
Massachusetts NFIP flood insurance.
Many options in Massachusetts regarding flood insurance are available, but they fall into two main categories. The Government Policy is also referred to as the NFIP, FEMA, and the private flood insurance market.
The National Flood Insurance Program (NFIP), also known as FEMA, is the government option for flood insurance. The NFIP has enjoyed a 50-state monopoly on the flood insurance market.
Not “private flood insurance” but NFIP Resellers
Suppose you have Nationwide Flood Insurance, State Farm Flood Insurance, Progressive Flood Insurance, or any of the logos above. In that case, you are buying the NFIP flood policy that is just being resold through a government program. These companies are private companies, but their flood insurance is not. Here is a list of the 70 companies that resell the NFIP policy.
Massachusetts flood insurance low-to Moderate Risk rate and cost.
This is Flood Zone X, which is not lender required flood zone.
This is usually identified as an X-flood zone. Then we would suggest the government Preferred Risk Policy (PRP) which is a subsidized policy and has set flood insurance coverage limits (see the grid below):
Here is a link if you want to dig into this one. Be ready for an eye chart because every option is public record and should be standardized to accost whoever writes these policies.
The average cost for flood insurance in Massachusetts with the maximum set limits in these Low-risk flood zone areas is $405 – $700 per year.
Your property is in a higher-risk flood zone, usually identified with a Flood Zone AE. Your lender will require you to have flood insurance. The cost of flood insurance in Massachusetts depends on many factors unique to the structure. We will try to give you an idea of the most common homes we see in Massachusetts with a basement foundation.
We will look at the Massachusetts cost of flood insurance for the NFIP maximum of $250,000 for the (building only) with NO CONTENTS and our recommended deductible of $5,000.
We will be rating this example on the NFIP and on a few of our private flood insurance policies, specifically Lloyds flood insurance options in Massachusetts.
Our example is in Boston, but the premiums will be the same in Revere, Quincy, Falmouth, Provincetown, and many other Massachusetts floods.
In our example, the Base Flood Elevation (BFE is 10.0) and is a home that is built before 1973
Coverage of $250,000 (RCV) building coverage, No Contents, and $5,000 deductible.
This option came from the company that used to run the NFIP program, so the coverage matches the NFIP coverage with two differences. They offer living expenses covering your cost when you are displaced from your home during repairs (most Lloyds flood policies offer this). They also offer a unique swimming pool clean-out, so if you have a pool, ask for this coverage.
All homes that are ocean-facing are custom built, so with this special consideration, our Lloyd’s of London VE flood zone and other Private Flood Insurance options for oceanfront properties consider this with variable coverage options and significant savings. Below is a case study for a property we were shopping for just last week.
Our example was in the EASTHAM, MA area and is in a VE flood zone map.
For the coverage of $250,000 with no contents and a $5,000 deductible, the NFIP annual cost for flood insurance in a VE flood zone is $23,859.00. Ouch!
Since we are who we are and experts in Flood Insurance, we will look at every property every way possible to ensure that we are getting the best premium for our clients, and WE often Do (smile wink)
We tried this same property on our Private flood options and were able to get the premium to under $2,500, and we have, in some cases with similar properties, get the annual premium to $600. This was a feather in our cap and made our clients very happy. Again all properties are unique in these VE flood zones, but if we can find a private flood policy for you, we guarantee it will be better than the NFIP option.
Let us help you save money today.