Massachusetts Homeowners Pay Average Insurance Costs, but Prices Poised to Climb Higher

Massachusetts homeowners face mid-range insurance premiums compared with other states.

While far more affordable than Gulf Coast markets like Florida and Louisiana, Massachusetts households still pay more than some of their New England neighbors.

New data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report helps explain the state’s position in the national landscape.

Massachusetts’s Insurance Costs in Context

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Massachusetts homeowners with a mortgage typically pay $1,500–$1,999 annually for homeowners insurance, while those without a mortgage average $1,500–$1,999 as well. Overall statewide costs fall in the $1,000–$1,499 range.

Massachusetts has 1,765,324 insured homeowner households in total—1,156,846 with a mortgage and 608,478 without. Among mortgaged owners, 102,652 pay less than $100 annually and 107,006 pay $4,000 or more. Among those without a mortgage, 86,205 pay less than $100 and 45,802 pay $4,000 or more.

Compared with nearby states, Massachusetts sits near the higher end. Rhode Island homeowners average $1,500–$1,999 for both mortgaged and non-mortgaged households. Connecticut also falls into the $1,500–$1,999 range for mortgaged owners, though non-mortgaged households average less, at $1,000–$1,499. By contrast, Maine and New Hampshire are more affordable, with mortgaged households typically paying $1,000–$1,499. Vermont also trends lower, at $1,000–$1,499 for mortgaged homeowners. This places Massachusetts near the top of New England, though still far below high-cost Southern states.

Climate Risks and Regional Pressures

The Realtor.com 2025 Climate Risk Report shows that climate-exposed Southern markets drive the steepest insurance burdens. Miami, for instance, has the highest premiums in the country, averaging $22,718 annually, or 3.7% of home value. Cape Coral, Sarasota, and Tampa also rank among the most expensive, with premiums consuming more than 2% of median home values.

Massachusetts does not appear on the report’s list of metros with the heaviest insurance burdens or highest flood and wind exposures. However, its coastal position means it remains vulnerable to hurricanes and storm surges, particularly in areas around Cape Cod and Boston Harbor. While these risks have not yet pushed statewide costs into the highest tiers, they represent an ongoing concern that could affect affordability in the future.

A National Affordability Challenge

Even though Massachusetts premiums are mid-range, homeowners across the U.S. are struggling with rising costs. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already faced difficulties obtaining or renewing their coverage.

The financial strain is changing homebuying behavior. Nearly 30% of buyers said they had completely changed their target areas due to insurance concerns, while another quarter said they had overhauled their strategies altogether. Alarmingly, 58% of homeowners said they would consider dropping coverage if costs rose too high, with Gen Z the most likely to take that risk.

For Massachusetts, premiums remain manageable compared with the hardest-hit states. But with a significant coastal population, the state could see affordability pressures increase as climate risks intensify along the Atlantic seaboard.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.