The Massachusetts Insurance Trap: Why Coastal Homes Face 11.6% Non-Renewal Rates (And How It's Killing Real Estate Deals)

Massachusetts homeowners insurance premiums average $2,008 (16% increase forecast for 2025), but this obscures a market in crisis: Martha's Vineyard faces 11.6% non-renewal rates (3rd highest in U.S.), carriers are using aerial surveillance to cancel policies over roof condition, and 30% of the state's pre-1940 homes face automatic rejection due to knob-and-tube wiring. New MPIUA rules effective February 2025 mandate 90% insurance-to-value coverage and mandatory flood insurance for coastal properties, forcing higher premiums and creating transaction failures when buyers can't secure coverage required by lenders.

Buyers considering coastal or historic properties, current homeowners facing non-renewals, real estate agents managing transaction failures, sellers of pre-1940 homes, anyone evaluating Cape Cod/Islands properties, Greater Boston buyers assessing total ownership costs.

• •Martha's Vineyard 11.6% non-renewal rate is 3rd highest in U.S.; Nantucket at 7.3%, Cape Cod at 6.3%
• •Massachusetts has highest % of pre-1940 homes (30.39%); most face automatic rejection for knob-and-tube wiring
• •New MPIUA rules (Feb 1, 2025): 90% insurance-to-value mandatory + flood insurance for coastal properties
• •Carriers using aerial surveillance to non-renew policies based on roof moss, undeclared trampolines, property condition
• •Knob-and-tube rewiring costs tens of thousands; often shifts to seller as buyers can't get insurance without remediation commitment
• •Slate roofs now offered Actual Cash Value only—catastrophic loss pays pennies on the dollar after depreciation
• •Independent agents placing 78.8% of MA insurance (highest in nation)—must shop 5-6 carriers per client in hard market
• •16% premium increase forecast 2025; coastal/older homes see 30-50% increases year-over-year