Home · Second Home · Flood · Rentals · Massachusetts
By Jon Merwin, Founder and CEO
Published October 2026 · Updated October 7, 2026
- Portsmouth Atlantic Insurance is licensed in Massachusetts and insures Chatham homes, condos, cars and boats from our Portsmouth, NH office.
- Census data counts about 55 percent of Chatham’s housing units as held for seasonal, recreational or occasional use, compared with about 4 percent statewide. Most Chatham policies are written for a home that sits empty part of the year.
- FEMA’s Barnstable County flood maps, effective July 16, 2014, show Zone AE and coastal high-hazard Zone VE in Chatham. Homeowners policies exclude flood.
- Cape Cod homes often carry a separate wind or named storm deductible, which the Division of Insurance says generally runs from 1% to 5% of insured value.
- Chatham requires a Board of Health rental certificate before you rent a home or bedroom for 30 days or less, and state law requires at least $1 million in liability coverage for each short-term rental.
Looking for home insurance in Chatham, Massachusetts? Portsmouth Atlantic Insurance is licensed in Massachusetts, among 10 states, and we insure Cape Cod homes from our office in Portsmouth, NH. In Chatham most of our clients own a second home: a summer house near the harbor, a cottage they rent part of the season, or a larger home on the water they plan to retire to. As an independent agency, we compare 40+ carriers instead of selling one company’s policy, which matters on the Cape, where the right carrier depends on distance to the water, how often the home is occupied and whether it is rented.
Can a Portsmouth agency insure a home in Chatham, Massachusetts?
Yes. We hold a Massachusetts license and work with clients by phone, email and video. Many Chatham owners live in New Hampshire, Boston or out of state, and one agent for the primary home, the Cape house, the cars and the umbrella keeps the coverage lined up. See our Massachusetts second-home and vacation home insurance guide and our Massachusetts homeowners insurance page for statewide notes.
How many Chatham homes are second homes?
Most of them. In the Census Bureau’s 2019-2023 American Community Survey, 4,087 of Chatham’s 7,420 housing units, about 55.1 percent, were vacant because they are held for seasonal, recreational or occasional use. Statewide the share is about 3.8 percent. About 43.9 percent of Chatham’s units were occupied as someone’s usual home, and owners occupied about 88.8 percent of those, compared with about 62.6 percent statewide. About 89.1 percent of units are single-family detached houses (about 51.4 percent statewide).
Source: U.S. Census Bureau, American Community Survey 2019-2023 5-year estimates, table B25034 (year structure built), from the ACS summary file. Our calculation. Estimates carry margins of error. Very small bars are drawn at a minimum width so the label stays readable.
Chatham’s housing is spread across the decades, with a large share built from the 1960s through the 1980s and about 32.0 percent built before 1960. Older Cape houses and newer, larger homes both need a rebuild estimate that reflects coastal construction costs, not just square footage.
What changes when a Chatham home sits empty part of the year?
Carriers ask how many months the home is occupied, who checks on it and how it is heated and protected in winter. A home left empty from fall to spring can face freeze, water and theft risks that nobody notices for weeks, and some policies limit coverage after a stretch of vacancy. We look for policies written for seasonal homes and ask about things carriers like to see, such as low-temperature and water-leak monitoring and a caretaker or neighbor with a key.
| Risk in Chatham | Usually covered by homeowners | Usually not covered | What to ask |
|---|---|---|---|
| Wind damage to a roof or windows in a nor’easter or hurricane | Yes | The part under your wind or named storm deductible | Is the wind deductible a percentage, and per event or per season? |
| Storm surge or wave wash into the house | No | Yes | Flood zone (AE or VE) and an NFIP or private flood policy |
| A frozen pipe in an empty winter house | Often, if you took reasonable care | Can be limited if the home was vacant or unheated | Vacancy wording, heat and monitoring requirements |
| A rental guest injured on the property | Depends on the rental endorsement | Short-term rental claims if excluded | Rental endorsement or separate policy; the $1 million state minimum |
| Your car flooded in a coastal storm | No (homeowners or flood) | Yes, without comprehensive | Comprehensive coverage on the auto policy |
“With a Chatham second home, the questions I ask first are how many months you’re really there and whether you rent it. Those two answers decide which carriers fit, whether you need a rental endorsement and how the liability ties into your umbrella. Tell us up front and we can build the policy around how you actually use the house.”— Jon Merwin, Founder and CEO, Portsmouth Atlantic Insurance
Does homeowners insurance cover flooding in Chatham?
No. The Massachusetts Division of Insurance (DOI) reminds homeowners that flood damage isn’t included in a standard home insurance policy. You can buy flood coverage from the National Flood Insurance Program (NFIP) or from a private insurer.
Chatham is mapped on FEMA’s countywide Barnstable County Flood Insurance Rate Map, with a Flood Insurance Study and panels effective July 16, 2014; FEMA’s National Flood Hazard Layer showed no newer panel dates for Chatham when we checked in October 2026. The maps show Zone AE and coastal high-hazard Zone VE, where FEMA expects wave action on top of the flood. Look up your address on FEMA’s Flood Map Service Center.
- Lender requirements. FloodSmart says flood insurance is required if you own a home in a Special Flood Hazard Area and have a government-backed mortgage.
- Waiting period. FloodSmart says NFIP coverage generally takes effect 30 days after purchase, with exceptions such as a policy bought with a new or changed mortgage.
- Program status. As of early October 2026, the Congressional Research Service reports that the NFIP is authorized through December 11, 2026. Our post on the December 11 flood insurance deadline explains what to do now.
- NFIP policies. We place NFIP flood policies mainly through Selective, an NFIP Write Your Own carrier. NFIP building coverage has a federal cap, and FloodSmart says NFIP policies don’t cover temporary housing during repairs.
- Private flood. For larger or waterfront homes we also compare private flood carriers, including Flow Flood, Neptune Flood, Beyond Floods, The Flood Insurance Agency, CatCoverage and Aon Edge. Which ones can write a particular Chatham home depends on the property.
Our flood insurance page explains the options in more detail.
We’ll compare carriers for seasonal and waterfront homes and line up flood, auto, boat and umbrella coverage.
Talk to our Portsmouth team: (603) 431-4020 · Start a Chatham home insurance quote
How do wind and named storm deductibles work on the Cape?
The DOI says some Massachusetts policies have a separate deductible that applies only when a named storm or wind causes damage. It is usually a percentage of the home’s insured value, generally from 1% to 5%, and may apply per event, per season or per calendar year.
The FAIR Plan’s published rules treat Barnstable County differently from most of the state. Its minimum named storm deductible in Barnstable County is 2% of the dwelling limit, rising to 5% at higher limits for homes within half a mile of the coast. Private carriers file their own rules, so ask us to translate any percentage into a dollar figure for your home before you choose.
What if no insurer will write a Chatham home?
Because we work with 40+ carriers, one decline doesn’t end the search. If no company in the regular market will write the home, the DOI says the market of last resort is the Massachusetts Property Insurance Underwriting Association (MPIUA), known as the FAIR Plan, which offers basic property coverage and doesn’t cover flood. The DOI also says that as of 2025, a new FAIR Plan policy for a property in a Special Flood Hazard Area in a community overseen by the Office of Coastal Zone Management requires a separate flood policy, and CZM lists Chatham among the communities its Cape Cod and Islands office serves.
Can you rent a Chatham home short term?
Yes, with a town certificate. The Town of Chatham says that since July 1, 2023, any residential dwelling or bedroom rented for 30 days or less needs a rental certificate from the Health Division before it is rented. Certificates run from March 1 to February 28, are issued to the owner and can’t be transferred, every listing must show the Chatham registration number, and occupancy is limited to two people per legal bedroom plus two. The Health Division also inspects first-time applicants and a share of existing rentals each year. Check the town’s current rules before you list.
State law applies everywhere. Under Massachusetts General Laws Chapter 175, Section 4F, a short-term rental operator must carry at least $1 million in liability coverage for each short-term rental, unless the rental is offered through a hosting platform that maintains equal or greater coverage. The operator must also notify the homeowners or renters insurer, and insurers may exclude short-term rental claims from a regular homeowners policy. If the home is on the FAIR Plan, its rules allow occasional rental of up to 12 weeks a year for a year-round home and up to 4 weeks for a seasonal property. Tell us before you rent so the coverage fits.
How much dwelling coverage does a Chatham home need?
Enough to rebuild it. The DOI notes that labor and construction costs have risen, so you may need to raise your dwelling coverage (Coverage A) to rebuild at today’s prices. On the Cape, a rebuild estimate should account for coastal building requirements and the cost of getting materials and trades to the site. We compare extended or guaranteed replacement cost options and set the limit with you.
For higher-value and waterfront homes, we compare our six high-value home carriers: Chubb, Cincinnati, Openly, National General, Hanover and Andover. We also look at scheduling jewelry, art and collections at agreed values. Our coastal Massachusetts high-value home insurance page and our high net worth insurance page go deeper.
What about condos, boats, auto and umbrella?
For a Chatham condo, a unit-owner (HO-6) policy works alongside the association’s master policy; we read the master policy and its deductible, including any wind deductible, before quoting, and add loss assessment coverage. Our guide to condo insurance vs. homeowners insurance explains the difference. If you own a Massachusetts condo, our guide to condex insurance in Massachusetts explains how the HO-6 and the master policy fit together.
For boats, the town’s Harbormaster manages moorings, mooring wait lists and waterways permits. Homeowners policies offer limited protection for watercraft, so most boats need their own policy; see our boat and watercraft insurance page. For cars, the DOI notes that homeowners and flood insurance don’t cover vehicles, but an auto policy with comprehensive coverage will likely cover flood damage.
An umbrella policy adds liability limits over your homes, cars and boat. It is worth a close look if you rent the Chatham house, host guests on a boat or own more than one home, and we check that the umbrella carrier accepts any rental exposure.
- How many months a year the home is occupied, and who checks on it when it is empty
- Heat, water shutoff and any leak or low-temperature monitoring
- Your flood zone from FEMA’s map (AE, VE or other) and any elevation certificate
- Your current declarations page, including any wind or named storm deductible, as a percentage and in dollars
- Rental plans, your Chatham rental certificate and how the rental is booked
- For condos: the master policy, the master deductible and the bylaws
- Boats and moorings, your cars, and your current liability and umbrella limits
Chatham home insurance FAQs
Can an insurance agency in New Hampshire insure my second home in Chatham, MA?
Yes, if the agency is licensed in Massachusetts. Portsmouth Atlantic Insurance is licensed in Massachusetts and insures Chatham homes, condos, cars and boats from our Portsmouth, NH office, by phone, email or video.
Do I need flood insurance in Chatham?
If the home is in a Special Flood Hazard Area, such as Zone AE or VE, and has a government-backed mortgage, flood insurance is required. Outside those zones it is optional, but standard homeowners policies don’t cover flood, and NFIP coverage generally starts 30 days after purchase.
What is a named storm deductible on a Cape Cod home?
It is a separate deductible that applies when a named storm or wind causes damage. The Massachusetts Division of Insurance says these generally run from 1% to 5% of the home’s insured value, and they can apply per event, per season or per calendar year.
Can I rent my Chatham home on a short-term rental site?
Chatham requires a rental certificate from the town Health Division before you rent a home or bedroom for 30 days or less, and listings must show the registration number. State law also requires short-term rental operators to notify their insurer and carry at least $1 million in liability coverage for each rental.
Does insurance on a seasonal home cost more or cover less?
It depends on the carrier and the home. Carriers look at how long the home sits empty and how it is protected, and some limit coverage after a period of vacancy. We compare policies written for seasonal homes so the wording fits how you use the house.
Do I need an umbrella policy for a Chatham vacation home?
It is worth considering, especially if you rent the home, have a pool or dock, or own a boat. An umbrella adds liability limits over your home, auto and boat policies, and we check that it fits any rental use.
Sources
- Massachusetts Division of Insurance, “Division of Insurance Reminds Massachusetts Residents to Prepare Now for a Hurricane” (Aug. 8, 2024)
- Massachusetts Division of Insurance, “Massachusetts Property Insurance Underwriting Association”
- Massachusetts Property Insurance Underwriting Association, “Producer Quick Reference” (named storm deductible and occasional rental rules)
- Massachusetts Office of Coastal Zone Management, “CZM Cape Cod and Islands Region”
- FEMA, Flood Insurance Study, Barnstable County, Massachusetts (effective July 16, 2014), via the Town of Chatham
- FEMA, National Flood Hazard Layer (panel effective dates and flood zones, checked October 2026)
- FEMA, “Flood Map Service Center”
- FEMA FloodSmart, “Buy a Flood Insurance Policy”
- Congressional Research Service, “What Happens If the National Flood Insurance Program (NFIP) Lapses?” (updated Sept. 11, 2026)
- Massachusetts General Laws, Chapter 175, Section 4F
- Town of Chatham Health Division, “Short Term Rental Registration Certificate”
- Town of Chatham, “Harbormaster”
- U.S. Census Bureau, American Community Survey 2019-2023 5-year estimates, tables B25004 “Vacancy Status”, B25034 “Year Structure Built”, B25024 “Units in Structure” and B25003 “Tenure”
This page is general information, not a policy or legal advice. Coverage, forms and availability vary by state, carrier and property, and every policy is subject to underwriting. Local rules change, so check current town rules before you build or rent. Your policy documents control.
Summer house, rental cottage or waterfront home, we’ll compare carriers from our Portsmouth office.
Talk to our Portsmouth team: (603) 431-4020 · Request a Chatham home insurance quote
By Jon Merwin, Founder and CEO
Portsmouth Atlantic has been an independent agency since 2005, is licensed in 10 states, works with 40+ carriers and has earned 1,000+ Google reviews and over 2,000 testimonials across our two offices. We don’t charge agency or broker fees. Meet our team.