Growing challenges homeowners like you are facing in wanting to secure and maintain their long-term insurance coverage in coastal regions as climate-related risks intensify.
Recent reports show that over 26% of Boston metro properties, particularly along the coast, are likely to see premium hikes or non-renewals due to wind and flooding risk.
For coastal residents near Boston, these shifts mean it’s more important than ever to review coverage, explore specialized flood policies, and assess insurability—or potential non-renewal—in coming years.
Key Takeaways for Massachusetts Coastal Homeowners
1. Rising Insurance Premiums
Homeowners’ insurance premiums in Massachusetts have been on the rise. Between May 2022 and May 2023, premiums increased by 15%, with coastal areas experiencing even steeper hikes due to heightened risks associated with storms and flooding.
2. Increased Non-Renewal Rates
In 2023, Massachusetts had the fifth-highest non-renewal rate for homeowners’ insurance in the U.S., trailing only Florida, Louisiana, North Carolina, and California. Coastal regions, including Cape Cod and the islands, saw significant policy non-renewals, primarily due to flooding risks exacerbated by sea-level rise.
3. Climate Change and Reinsurance Costs
The increasing frequency and severity of natural disasters have led to higher reinsurance costs for insurers. These costs are often passed down to homeowners in the form of higher premiums.
4. Property Value Implications
Rising insurance costs and climate-related risks are beginning to impact property values in coastal areas. For instance, a beachfront property on Nantucket, once valued at nearly $2 million, was sold for just $200,000 due to severe coastal erosion and the looming threat of uninsurability.
What This Means for Boston-Area Coastal Residents
- Proactive Insurance Management: Regularly review and update your homeowners insurance policy to ensure adequate coverage, especially if you’ve made significant home improvements or if your property’s value has changed.
- Engage with Local Authorities: Stay informed about local and state initiatives aimed at mitigating climate risks, such as infrastructure projects or zoning changes, which can impact both your property’s safety and insurance premiums.
- Consult Insurance Professionals Like Us: Work with insurance agents familiar with coastal property challenges in Massachusetts. They can provide guidance on available coverage options and help navigate the complexities of the current insurance landscape.
Taking Action Ahead of Time is Smart
Do you have your insurance person on speed dial? We want to bring attention to all of the areas of experience Curtis and the team at J.M. Whitney and Co. bring to the table.
For over 70+ years, this family-run business has been well-versed and experienced in Massachusetts-specific insurance, real estate, and commercial real estate acquisitions, management, and insurance. We look forward to becoming your trusted resource. Share our page with friends and loved ones.
- For any insurance or real estate and commercial management, brokerage, or questions, reach out.
- Featured properties updated regularly: View Our MLS Listings
Visit our social media pages for additional information and tips!
@jmwhitney on Facebook, Instagram, Threads, or LinkedIn
