Homeowners Insurance in Cambridge, Massachusetts (2024)

Cambridge, Massachusetts, just across the Charles River from Boston, is home to the prestigious learning institutions of Harvard and the Massachusetts Institute of Technology (MIT). If the city is also home to you and your family, you likely need a homeowners insurance policy.

Home insurance guards your property from several types of damage, and mortgage lenders will require you to have a policy as long as you’re paying off your home loan. So, ensure you have the best homeowners insurance possible with this guide.

Key Takeaways:

Homeowners insurance in Cambridge costs around $1,335 annually, although premiums vary based on many factors. For instance, you’ll likely pay more if you have a larger, more expensive home. Location, policy details, and provider are also among the variables that affect insurance costs.

Cambridge premiums are lower than nearby Boston’s by just over $100 a month on average and are over $200 cheaper than the Massachusetts average rate. This could be because Cambridge is less exposed to wind and water damage from the Atlantic coast than other places in the state. Coastal properties, such as those on Cape Cod, are more prone to hurricane damage and typically have higher premiums as a result. 

You will see higher insurance costs if you have a large house or expensive property, though. Companies utilize home replacement cost as a main indicator of how much insurance you need. Larger, more expensive homes require higher coverage limits, and the more insurance you need, the more your coverage costs. 

Replacement cost is based on the cost of rebuilding your home, accounting for construction, labor, and material expenses. Your replacement cost will climb if your home is bigger or if you have many high-end fixtures and features.

Many more variables affect insurance rates, though; you won’t know exactly how much you must pay until you get quotes. Additionally, companies have differing business strategies and underwriting methods that produce different premiums for the same policies. Since costs vary by company, too, you should always compare multiple quotes when seeking Cambridge home insurance to find the best deal.

Homeowners insurance in Cambridge covers your property and liability in several ways. Plans are normally divided into sections based on the different coverage areas. They are briefly outlined below.

Policies cover several types of possible damage called perils. Some of the most common perils include fire, theft, wind, and water damage. However, damage from floods, basically any damage caused by rushing waters originating outside the house, is never covered by home insurance.

For insurance purposes, floods are usually caused by heavy rains, storm surges, mudslides, and coastal erosion. Homeowners insurance plans don’t cover these occurrences. Floods are America’s most costly and common natural disaster, and insurers won’t calculate this risk into their policies.

Instead, you’d need a separate flood insurance plan to guard against the disaster. The National Flood Insurance Program (NFIP), administered by the Federal Emergency Management Agency (FEAM), is the nation’s largest flood insurance provider. And while Cambridge doesn’t have many federally designated flood zones, FEMA stresses that no property is safe from flooding and anywhere it rains, it can flood.

If you want to consider flood insurance in Cambridge, our team at Clovered can help. We can answer questions about policy details and help you find a plan from the NFIP or a private flood insurance company.

The best homeowners insurance in Cambridge depends on your personal coverage needs and budget. No one company will be the best option for everyone since every policyholder is different. You should understand coverage options and choose limits and possible endorsements that are the best for your situation. Then, you should compare quotes among carriers to find the best deal.

Understand Your Options: Technically, there are different types of home insurance plans. An HO3 policy is the most common type of policy for single-family homes. You can also get an HO1 or HO2 policy, but these offer inferior protection and often don’t satisfy lender requirements. If you’re buying a condo, which is common in Cambridge, you may need an HO6 policy.

Adjust Coverage Limits: You can set many of your policy limits when quoting. Choose limits that meet your needs while falling within your budget. For instance, you can set your dwelling limit anywhere from 80% to 100% of your home’s replacement cost. Also, most insurers recommend at least $300,000 in liability coverage, but you may want to raise your limits to $500,000 or more depending on your assets. Companies usually have a maximum available liability limit of $1 million by default, but you can ask about more if needed.

Recognize Exclusions: Note what your policy doesn’t cover. You can get endorsements, which are optional coverage add-ons, for certain items or perils that aren’t fully insured or excluded by default. For example, some common endorsements include scheduled personal property coverage for especially expensive possessions, like art, jewelry, or memorabilia, and water backup coverage for water damage caused by sump pump and other drain failures.

With so much to keep track of when quoting, you may want some help when seeking home insurance. You can consult a Cambridge insurance agency, and there are generally two types of insurance agents: captive and independent. 

Captive agents only work with one provider and are experts for that carrier. This is how State Farm usually sells insurance, for example. On the other hand, independent agents, like our team at Clovered, partner with several carriers and will work away on our end to match you with the right provider for your needs. 

An insurance agency in Cambridge can also help you find discounts and answer any questions you may have about endorsements, renewals, or your policy in general.

Several factors affect home insurance rates. Companies consider a large number of variables to get the best possible understanding of your risk profile, which is influenced by your home and personal factors like your credit score and claims history. 

Carriers assess many details of your property that affect its likelihood of damage. Home age is crucial, as older components, such as siding, roofing, and pipes, are more likely to fail during severe weather or from wear and tear. Housebuilding materials also influence rates. Masonry homes, made from brick or concrete, normally withstand wind and fire damage better than wooden houses and often have lower rates. Having wind mitigation features also reduces premiums.

Companies also consider more personal details when determining rates. People with a history of filing home insurance claims often pay more for property insurance in Cambridge. Carriers consider repeat filers more of a financial risk to cover. People with lower credit scores also usually pay more for coverage.

The details in your policy also impact rates. Opting for higher coverage limits and adding endorsements raise premiums, while qualifying for discounts and raising your deductible reduces rates.

Whether you’re a first-time homebuyer seeking insurance or an existing property owner looking to switch carriers and save money, our team at Clovered is here to serve your needs. We want to make getting home insurance quotes in Cambridge as easy as possible.

You can use our online quoting tool to compare your coverage options in just a few minutes. All you must do is provie some information about yourself and your home, and you can possibly bind your plan totally online.

If you’d rather quote over the phone with the help of a licensed agent, you can also call us at 833-255-4117 during business hours. We’ve helped thousands find and maintain coverage, and we’d be happy to assist with home insurance quotes in Cambridge.