Massachusetts Home Insurance Jumped 43%. A New Home May Soften the Hit.
The Bay State just had the biggest home insurance increase in the nation. Here is what that means if you are shopping for a new home.
Bob Wiltse, REALTOR®
Claude.ai: Research and Writing Assistant
September 27, 2026
Massachusetts home insurance became much more expensive this year. A study from Insurance.com, shared by Boston 25 News on September 25, found the average premium rose 42.9% from 2025 to 2026. That was the largest percentage increase of any state.
If you are thinking about buying, this matters. Insurance is part of your monthly payment, like your mortgage and taxes. The age of the home you buy can make a real difference in what you pay.
The numbers behind the jump
Insurance.com reports that the average Massachusetts premium went from $1,478 in 2025 to $2,112 in 2026. That works out to about $176 a month.
That is $634 more per year, or about $53 more each month, for the same coverage.
Here is the good news. Even after the jump, Insurance.com ranks Massachusetts 31st in the nation for cost. The U.S. average is $2,872 a year. So we started low, and we are catching up fast.
One note on the study. It priced a sample policy for a single-family home built in 1997, with $300,000 in dwelling coverage and a $1,000 deductible. Your own quote will depend on your home, your town, and your coverage.
Why are rates rising so fast here?
The Insurance.com study points to a few reasons:
Older homes. Massachusetts has a relatively old housing stock. Older homes cost more to rebuild.
Size and building style. How our homes are built raises the cost to replace them.
Storm risk. We are a coastal state with hurricane exposure.
Yearly coverage bumps. Insurers raise the rebuild amount each year to keep up with rising prices.
Coastal buyers face extra pressure. CommonWealth Beacon reports that the Massachusetts FAIR Plan, the state's "insurer of last resort," covered more than 173,000 properties in 2024. That was its biggest one-year jump in two decades. The FAIR Plan is the backup option for owners who cannot get a policy from a regular company. About 40% of Cape Cod and island homes now use it, the outlet reports.
Massachusetts home insurance and new construction
This is where a new home can help. Many insurers offer a "new home discount" for recently built houses.
Insurance.com found this discount averaged 42% across major national insurers in its latest review, updated in 2025. Some companies offered over 50%, others closer to 30%. The biggest discount usually lasts about a year. After that, many insurers still give a smaller "age of home" discount while the house remains fairly new.
Why would a new home cost less to insure? It likely comes down to risk. A new home has a new roof, new wiring, new plumbing, and a new heating system. It is built to today's building code. Those are the things that fail and cause claims in older homes.
Here is a simple example. The $2,112 Massachusetts average, with a 42% discount, would drop by about $887 a year to roughly $1,225. That is about $74 a month back in your pocket. This is only an illustration. The discount data is national, covers a different set of homes, and not every Massachusetts insurer offers the same deal. Always get real quotes.
What should buyers do?
Get quotes early. Ask for insurance quotes before signing a purchase agreement, not after.
Ask about new home discounts by name. Also ask how the discount changes after year one.
Compare new and resale. When comparing two homes, add insurance to the monthly cost. The gap can be real.
Check the flood map. Near the coast, ask whether the lot is in a flood zone and what flood coverage would cost.
Ask your builder for paperwork. Roof specs, code compliance, and system warranties can help your agent and your insurer.
Shop again at renewal. Rates are moving fast. What was a good deal last year may not be now.
Rising insurance is another cost buyers face this fall. For many, a newly built home may help keep that cost in check.
Have questions about a new home in Massachusetts? Reach out to Bob Wiltse, REALTOR®, eXp Realty. 978-793-1719 | bob@bobwiltse.com | bobwiltse.com
Sources
1. Boston 25 News (Insurance.com via Stacker), "The states where home insurance is becoming unaffordable in 2026," September 25, 2026. https://www.boston25news.com/news/states-where-home/SBMRGI3APEZ3DKUMEUYNFIQIDQ/
2. Insurance.com, "New home insurance discount: What you need to know," last updated August 26, 2025. https://www.insurance.com/home-and-renters-insurance/discounts/new-home-insurance-discount
3. CommonWealth Beacon, "What is the Massachusetts FAIR Plan, the state's insurer of last resort?" December 19, 2025 (updated January 20, 2026). https://commonwealthbeacon.org/explainers/what-is-the-fair-plan-mass-s-home-insurer-of-last-resort-an-explainer/
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