Homeowners Insurance in Massachusetts

Massachusetts homeowners insurance provides property and liability protection using standard ISO (Insurance Services Office) policy forms with state-specific modifications.

Homeowners Policy Types

HO-2: Broad Form

Coverage:

• Dwelling: Named-peril coverage for 16 specified causes of loss
• Personal Property: Named-peril coverage
• Liability: Personal liability and medical payments

Typical Insureds:

• Homeowners seeking basic coverage
• Lower premium option

HO-3: Special Form (Most Common)

Coverage:

• Dwelling: Open-peril (all-risk) coverage except excluded perils
• Personal Property: Named-peril coverage
• Liability: Comprehensive personal liability

Key Features:

• Most comprehensive owner-occupied dwelling coverage
• Covers all perils except those specifically excluded
• Required by most mortgage lenders

Exam Tip: HO-3 is the most common Massachusetts homeowners policy. Know that the dwelling has open-peril coverage but personal property has named-peril coverage.

HO-4: Contents Broad Form (Renters Insurance)

Coverage:

• Personal Property: Named-peril coverage for tenant belongings
• Liability: Personal liability and medical payments
• Loss of Use: Additional living expenses if unit uninhabitable

Insureds:

• Apartment renters
• Condo renters
• Anyone not owning the dwelling

HO-6: Unit-Owners Form (Condo Insurance)

Coverage:

• Personal Property: Named-peril coverage
• Unit Improvements: Coverage for interior improvements and betterments
• Loss Assessment: Covers assessments from condo association
• Liability: Personal liability coverage

Special Features:

• Coordinates with condo association master policy
• Covers the gap between association coverage and personal needs

HO-8: Modified Coverage Form

Coverage:

• Dwelling: Named-peril coverage with actual cash value settlement
• For Older Homes: Where replacement cost exceeds market value

Coverage Sections

Section I: Property Coverage

Coverage A: Dwelling

• Structure of the home
• Attached structures (garage, deck)
• Materials and supplies on premises for construction
• Coverage limit equals replacement cost

Coverage B: Other Structures

• Detached structures (shed, detached garage, fence)
• Typically 10% of Coverage A limit
• Minimum $1,000

Coverage C: Personal Property

• Contents of home (furniture, clothing, electronics)
• Typically 50-75% of Coverage A limit
• Off-premises coverage included (usually 10% of limit)
• Special limits for jewelry, firearms, silverware

Coverage D: Loss of Use

• Additional Living Expenses (ALE) while home is uninhabitable
• Fair rental value if renting part of home
• Typically 20-30% of Coverage A limit

Section II: Liability Coverage

Coverage E: Personal Liability

• Bodily injury and property damage liability
• Typical limits: $100,000 to $500,000
• No deductible applies
• Defense costs included

Coverage F: Medical Payments to Others

• Medical expenses for injured guests (no fault required)
• Typical limits: $1,000 to $5,000 per person
• No deductible applies

Named Perils (Covered Causes of Loss)

Standard homeowners policies cover these 16 named perils:

Exam Tip: Memorize the 16 named perils. For HO-3 policies, these apply to Coverage C (Personal Property) only—the dwelling has open-peril coverage.

Common Exclusions

Property Not Covered

Standard homeowners policies exclude:

Massachusetts-Specific Coverage Issues

Coastal Properties:

• Wind and hail coverage may have separate deductibles
• Hurricane deductibles often 2-5% of Coverage A
• Flood insurance essential for coastal homes

Winter Weather:

• Ice dam damage covered if loss sudden and accidental
• Frozen pipe damage covered if heat maintained
• Roof collapse from snow weight covered

Massachusetts FAIR Plan

What is the FAIR Plan?

The Massachusetts Property Insurance Underwriting Association (MPIUA), known as the Massachusetts FAIR Plan, provides basic property insurance for applicants unable to obtain coverage in the voluntary market.

FAIR Plan Features

When to Use FAIR Plan

• High-risk properties (coastal, high-crime areas)
• Properties with poor condition or claims history
• Applicants denied by standard insurers
• Bridge coverage while improving property

Exam Tip: The Massachusetts FAIR Plan is an important state-specific program. Know that it provides coverage for applicants denied in the voluntary market and requires proof of at least 2 denials.

Massachusetts Cancellation and Non-Renewal Laws

Massachusetts has strict consumer protection laws governing policy cancellations and non-renewals.

Cancellation Rules

During First 90 Days: Insurers can cancel for any legal reason with 30 days' notice

After 90 Days: Cancellation allowed only for:

• Non-payment of premium
• Fraud or material misrepresentation
• Substantial increase in hazard
• License suspension (for auto)

Non-Renewal Rules

Requirements:

• Must provide 60 days' notice before expiration
• Must state specific reason for non-renewal
• Cannot non-renew based solely on age of insured
• Cannot non-renew due to protected class status

Notice Requirements

Exam Tip: Massachusetts requires 60 days' notice for non-renewals and 30 days for cancellations after the first 90 days. Know the different cancellation rights during vs. after the first 90 days.