Homeowners Insurance Costs Are Rising
Charles King
Charles King is a top-producing real estate agent in Hingham, MA and a trusted Realtor serving the South Shore of Massachusetts, including Hanover, Hu...
Charles King is a top-producing real estate agent in Hingham, MA and a trusted Realtor serving the South Shore of Massachusetts, including Hanover, Hu...
Homeowners Insurance Costs Are Climbing — What It Means for Massachusetts Buyers, Sellers, and Condo Owners
Published: May 27, 2026 By: Charles King | Charles King Group at Real Broker MA, LLC Data sources: Pew Research Center, Consumer Federation of America, U.S. Treasury Department
If your homeowners insurance bill came in higher this year, you are not imagining it — and you are not alone. Insurance costs are rising across the country and right here in Massachusetts, and the ripple effects are now showing up in monthly housing budgets from Hingham to the Back Bay, from Wellesley to Newburyport, and across the Cape.
This is no longer a back-of-the-envelope line item. It is starting to influence what buyers can afford, what condo owners pay each month, and what lenders are willing to underwrite. Here is what the latest national data shows, and what it means locally.
How Much Have Homeowners Insurance Costs Actually Gone Up?
The numbers are striking.
A recent Pew Research Center survey of 3,524 U.S. adults — including 1,236 homeowners — found that 71% of homeowners say their insurance costs have risen in the past few years, and 42% say costs have gone up "a lot."
The data backs up the perception. According to the Consumer Federation of America, the average annual homeowners insurance premium jumped from roughly $2,655 to $3,303 between 2021 and 2024 — a $648 increase, or about 24%. The U.S. Treasury Department, in what it has called the most comprehensive analysis of the homeowners insurance market to date, found that average premiums per policy rose 8.7% faster than inflation between 2018 and 2022.
And it is not just a few hot zones. Premiums increased in 95% of U.S. ZIP codes between 2021 and 2024. One in three ZIP codes saw increases of more than 30%.
What it means:
This is no longer a regional problem. It is a national cost shift, and Massachusetts is squarely in it.
Why Are Insurance Premiums Rising So Fast?
There is no single cause. Industry experts and federal regulators point to a stack of pressures all hitting at once:
Inflation on rebuilding costs.
Replacement costs for property and casualty losses rose roughly 45% between 2020 and 2023, according to the Treasury. Labor costs for single-family home construction jumped 37% from 2018 to 2022. When it costs more to rebuild a home, insurers pay out more on claims — and pass those costs to policyholders.
Climate and severe weather events.
The number of U.S. weather and climate disasters causing more than $1 billion in damage increased more than fivefold from 2018 through 2022 compared with the 1980s, after adjusting for inflation. Even in markets like New England that are not typically in the headlines, insurers price risk on a national book — so a wildfire in California or a hurricane in Florida can influence the premium on a Cape Cod or South Shore home.
Reinsurance costs.
Insurers buy their own insurance, called reinsurance, as a backstop against catastrophic losses. The Treasury has described the reinsurance market as a "hard market" in recent years — meaning tighter terms, higher rates, and more risk retained by primary insurers, who then push costs forward.
State regulation differences.
A 2025 paper from researchers at Arizona State University, Columbia Business School, and Harvard Business School found that homeowners in less-regulated states are partly absorbing losses from highly regulated ones. The pricing structure is uneven across state lines.
Predictive underwriting and new technology.
Insurers have shifted from traditional historical-data underwriting to forward-looking predictive models. They are also using drone surveillance and data mining to flag older homes, outdated plumbing, or older roofs — and homeowners with poor "risk scores" are seeing fewer carriers compete for their business, and higher quotes when they do.
What it means:
None of these pressures are going away in the short term. Buyers and owners should plan for elevated premiums as the new baseline, not a temporary spike.
What This Looks Like Locally
We are seeing the national trend show up in our markets in three distinct ways:
1. Single-family premiums in our suburbs are climbing. Clients in Hingham, Cohasset, Norwell, Wellesley, Newton, Andover, and across our service areas are reporting renewal quotes that are meaningfully higher than last year. Older homes — which describes a large share of the housing stock across the South Shore, Metro West, and the Merrimack Valley — are getting flagged more often for plumbing, wiring, and roof age.
2. Condo association master insurance policies are spiking — and condo fees are following. This is one of the most underdiscussed pressures in the Massachusetts market right now. When a condo association's master policy renews at a 20–40% higher premium, that cost gets distributed across unit owners through monthly fees. We are seeing it in Boston neighborhoods like Back Bay, South End, Beacon Hill, Charlestown, and the Seaport, and in condo buildings across Newton, Brookline, Quincy, and the South Shore. Higher condo fees affect buyer qualification, resale value, and the math on every offer.
3. Lenders are paying closer attention. Mortgage lenders require homeowners insurance to close — and they are increasingly asking pointed questions when premiums look out of line with the loan, or when a buyer cannot easily secure a binder. For condo purchases, lenders are also scrutinizing master policy adequacy more aggressively than they did even two years ago. A weak master policy can delay or derail a closing.
What it means:
Insurance is no longer a quiet line on the closing disclosure. It is shaping affordability, monthly carrying costs, and even deal certainty. Find out how much you can afford with our Affordability Calculator.
What Buyers Should Do
If you are buying in 2026, treat homeowners insurance as a real variable in your underwriting — not a footnote.
Get a quote early. Ideally before you make an offer on a specific property, and certainly before you waive contingencies. Older homes, homes near the coast (think Scituate, Marshfield, Hull, Hingham harbor, Cape Cod, Newburyport, Dartmouth, Westport), and homes with older roofs or systems can quote significantly higher than newer or inland equivalents.
For condo buyers, request the master policy declarations and review the recent fee history before going under contract. A building with a recently spiked master policy may have already raised fees — or be about to.
What Sellers Should Do
If you are listing in this environment, two things matter:
Have your insurance file ready. Buyers and their agents are asking earlier. Knowing your current premium, carrier, and any claims history removes friction.
For condo sellers, get ahead of the fee story. If your building's master policy renewal drove a fee increase, be prepared to explain it. Buyers who understand the cause and see a well-run association are far less likely to walk.
Did Your Policy Just Go Up? It May Be Time to Shop It.
If your homeowners renewal — or your condo association's master policy renewal — came in significantly higher this year, you are not stuck with it. Shopping the policy is one of the most underused moves in residential real estate right now.
The same applies to condo associations. A board that has not put its master policy out to bid in three or more years is often leaving meaningful savings on the table — savings that flow directly back to unit owners through stabilized condo fees.
If you need a recommendation, let us know. We partner with insurance professionals across Massachusetts who genuinely look out for our clients' best interests — not just the first quote that lands in an inbox. A 20-minute conversation can be the difference between absorbing a 25% increase and avoiding most of it.
Outlook
Homeowners insurance pressure is not a one-year story. The combination of climate-driven loss patterns, reinsurance market hardening, and predictive underwriting models means elevated premiums are the new baseline, not a temporary spike. Buyers, sellers, and condo associations who treat insurance as a strategic line item — not an afterthought — will navigate the next 12–24 months much better than those who do not.
If you have questions about how rising insurance costs are affecting your home's value, your buying power, or your condo building's monthly fees, we would love to talk. And if you need a referral to an insurance partner who actually looks out for our clients, just ask.
Frequently Asked Questions
How much have homeowners insurance premiums actually risen in the U.S.?
The average annual U.S. homeowners insurance premium rose from roughly $2,655 to $3,303 between 2021 and 2024 — a 24% increase, or $648 per year (Source: Consumer Federation of America). Premiums increased in 95% of U.S. ZIP codes over that period, and the U.S. Treasury Department found that premiums grew 8.7% faster than inflation from 2018 to 2022.
Why are insurance premiums rising in Massachusetts even though we are not a hurricane or wildfire state?
Insurance carriers price risk on national and regional books, so catastrophic losses in states like Florida, Louisiana, and California influence pricing across the country. Rising rebuilding costs, higher reinsurance rates, and predictive underwriting models that flag older homes are also driving Massachusetts premiums upward, even in lower-risk inland markets like Metro West and Northern Middlesex.
Why are my Boston condo fees going up so much?
A significant portion of recent condo fee increases in neighborhoods like Back Bay, South End, Beacon Hill, Charlestown, and the Seaport is being driven by sharp increases in the building's master insurance policy. When master policy premiums rise 20–40% at renewal, associations distribute the cost across unit owners through monthly fees. Buyers should always request the master policy declarations and review recent fee history before going under contract.
Are South Shore homeowners seeing bigger increases than other parts of Massachusetts?
Coastal towns including Hingham, Cohasset, Scituate, Marshfield, and Hull tend to see higher premiums and steeper increases than inland markets because of proximity-to-water risk factors. Older housing stock across the South Shore is also getting flagged more frequently under newer predictive underwriting models, which can push premiums higher even for homes that have not filed a claim.
Should I shop my homeowners insurance policy if my premium went up?
Yes — if your renewal came in materially higher this year, shopping the policy is one of the most effective ways to manage the increase. Many homeowners discover that a competing carrier will quote 10–25% lower for comparable coverage, especially if their current carrier has tightened risk criteria. The Charles King Group can connect you with insurance partners who work with clients across the South Shore, Boston, Cape Cod, Metro West, and the Merrimack Valley.
Is rising insurance affecting home affordability and lender approvals?
Yes. Homeowners insurance is part of every lender's debt-to-income calculation, so higher premiums reduce the loan amount a buyer can qualify for. Lenders are also scrutinizing condo master policies more aggressively, and a weak or underfunded master policy can delay or derail a closing. Buyers should secure an insurance quote early in the process rather than after going under contract.
Is now a good time to review my condo association's master insurance policy?
If your association has not put its master policy out to competitive bid in three or more years, it is almost certainly worth doing. Master policy premiums have risen sharply across Massachusetts, and a refreshed bid process can stabilize or reduce monthly condo fees — which directly impacts unit values and resale activity. Boards looking for trusted insurance partners can reach out to the Charles King Group for introductions.