Home · Second Home · Flood · High-Value · Massachusetts
By Jon Merwin, Founder and CEO
Published October 2026 · Updated October 7, 2026
- Portsmouth Atlantic Insurance is licensed in Massachusetts and insures Falmouth homes, condos, cars and boats from our Portsmouth, NH office.
- Census data counts about 29 percent of Falmouth’s housing units as held for seasonal, recreational or occasional use, compared with about 4 percent statewide. Year-round homes and second homes sit side by side here.
- Falmouth’s FEMA flood map panels are effective July 16, 2014, and show Zone AE, Zone AO and coastal high-hazard Zone VE. Homeowners policies exclude flood.
- A storm-surge study posted on the town’s website notes that Buzzards Bay can funnel hurricane surge toward Falmouth’s western shore. Cape Cod policies often carry a separate wind or named storm deductible, which the Division of Insurance says generally runs from 1% to 5% of insured value.
- Falmouth’s new short-term rental bylaw, adopted at April 2026 Town Meeting, takes effect January 1, 2027 and requires a town license. State law already requires at least $1 million in liability coverage for each short-term rental.
Looking for home insurance in Falmouth, Massachusetts? Portsmouth Atlantic Insurance is licensed in Massachusetts and writes a lot of Massachusetts business from our office in Portsmouth, NH. In Falmouth we insure year-round homes in the villages, summer houses near the water, shingled cottages in Woods Hole, where the Steamship Authority ferries leave for Martha’s Vineyard, and larger waterfront homes on Buzzards Bay and Vineyard Sound. As an independent agency, we compare 40+ carriers instead of selling one company’s policy. On the Cape that matters, because the right carrier depends on how close the home is to the water, how often it is occupied and whether it is rented.
Can a Portsmouth agency insure a home in Falmouth, Massachusetts?
Yes. We hold a Massachusetts license and work with clients by phone, email and video. Many Falmouth owners split time between the Cape and a primary home in Boston, New Hampshire or out of state, and one agent for both homes, the cars, the boat and the umbrella keeps the coverage lined up. We also insure homes farther down the Cape in Chatham. For statewide notes, see our Massachusetts second-home and vacation home insurance guide and our Massachusetts homeowners insurance page.
What does Falmouth’s housing look like?
Falmouth had 22,156 housing units in the Census Bureau’s 2019-2023 American Community Survey. About 28.8 percent of them, 6,387 units, were vacant because they are held for seasonal, recreational or occasional use, compared with about 3.8 percent statewide. About 65.9 percent were occupied as someone’s usual home, and owners occupied about 82.7 percent of those, compared with about 62.6 percent statewide. About 84.5 percent of all 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.
Falmouth’s housing is newer, on the whole, than the state’s: about 34.0 percent of units date from 1970 through 1989 (about 22.1 percent statewide), and about 31.4 percent were built before 1960. About 14.1 percent were built in 1939 or earlier, less than the statewide 30.7 percent. If you own an older house, also check whether it sits in one of the town’s local historic districts, covered below.
| Housing measure | Falmouth | Massachusetts |
|---|---|---|
| Units held for seasonal, recreational or occasional use | 28.8% | 3.8% |
| Occupied homes that are owner-occupied | 82.7% | 62.6% |
| Single-family detached houses | 84.5% | 51.4% |
| Built 1970 through 1989 | 34.0% | 22.1% |
| Built 1939 or earlier | 14.1% | 30.7% |
What changes when a Falmouth 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 house closed up 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 the things carriers like to see, such as low-temperature and water-leak monitoring and a caretaker or neighbor with a key. Our page on second and seasonal home insurance covers the basics.
Water from below is a separate question. At the same April 2026 Town Meeting, Falmouth adopted a bylaw that limits discharging water from private property onto streets and sidewalks, including a ban from October 15 to April 15, and the Cape Cod Times reported that this includes water pumped out of basements. Standard homeowners policies generally don’t cover flood or groundwater seeping in. A water backup endorsement can cover water that backs up through drains or overflows a sump, so ask us about it if your basement takes on water.
| Risk in Falmouth | Usually covered by homeowners | Usually not covered | What to ask |
|---|---|---|---|
| Wind damage to a roof or windows in a hurricane or nor’easter | Yes | The part under your wind or named storm deductible | Is the wind deductible a percentage, and per event or per season? |
| Storm surge from Buzzards Bay or Vineyard Sound into the house | No | Yes | Flood zone (AE, AO 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 |
| Water backing up through a basement drain or sump | Only with a water backup endorsement | Groundwater seepage and flood | Water backup endorsement and its limit |
| Rebuilding a house in a local historic district | Yes, up to your limits | Code upgrades beyond ordinance or law limits | Rebuild estimate, ordinance or law limit, additional living expense |
| 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 |
Does homeowners insurance cover flooding in Falmouth?
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.
Falmouth is mapped on FEMA’s countywide Barnstable County Flood Insurance Rate Map. FEMA’s National Flood Hazard Layer showed all of the Barnstable County panels covering Falmouth with an effective date of July 16, 2014 when we checked in October 2026, and the town’s zoning bylaw defines its Floodplain Overlay District by that same July 16, 2014 map. The maps show Zone AE, Zone AO and coastal high-hazard Zone VE, where FEMA expects wave action on top of the flood, and FEMA’s flood data for Falmouth also include a Limit of Moderate Wave Action line along parts of the shore. The town posts a FEMA flood zones map too. Look up your address on FEMA’s Flood Map Service Center.
Falmouth’s geography is part of the story. A storm-surge study by Falmouth Fire Rescue Deputy Chief Glen A. Rogers, posted on the town’s website, describes the town as surrounded on three sides by ocean water, with Buzzards Bay forming an inverted “V” on the western shore that can funnel hurricane surge. It cites a 14-foot storm tide in the Falmouth area in the 1938 hurricane, and measurements of about nine feet of surge on the western shore and five and three-quarter feet in Woods Hole during Hurricane Bob in 1991, when high tide arrived with the storm.
- 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 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: Flow Flood, Neptune Flood, Beyond Floods, The Flood Insurance Agency, CatCoverage and Aon Edge. Which ones can write a particular Falmouth home depends on the property.
Our flood insurance page explains the options in more detail.
We’ll compare carriers for year-round, seasonal and waterfront homes and line up flood, auto, boat and umbrella coverage.
Talk to our Portsmouth team: (603) 431-4020 · Start a Falmouth home insurance quote
How do wind and named storm deductibles work in Falmouth?
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 Falmouth 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 Falmouth among the communities its Cape Cod and Islands office serves.
Does a Falmouth historic district affect your home insurance?
It can affect the rebuild. Falmouth has seven local historic districts: Davisville, Falmouth Village, North Falmouth, Quissett, Waquoit, West Falmouth and Woods Hole. The town says all work visible from a public way in those districts needs a Certificate of Appropriateness, or an administrative review, from the Falmouth Historical Commission before any town department can issue a building permit. In the Quissett district, the rules count the view from the water too. A certificate is good for two years. Outside the districts, the Commission runs the town’s demolition delay bylaw and its List of Significant Buildings. See the town’s historic district maps to check your address.
For insurance, that points to three things: insure the house for what it would cost to rebuild with the materials the Commission is likely to approve, ask how much the policy pays under ordinance or law coverage for code upgrades, and check how long additional living expense coverage lasts, because approvals add time. Our guide to historic home insurance goes deeper.
How much dwelling coverage does a Falmouth 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, and additions or remodeling can raise the rebuild cost too. 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.
“Inflation over the past few years has moved the goalposts on what it costs to rebuild, whether it’s an older cottage in Woods Hole or a newer home on the water. We’re seeing much higher dwelling coverage than in the past. Insurance companies are adjusting too, and expanding their appetite for higher-value homes, so Falmouth owners have more options than they used to.”— Jon Merwin, Founder and CEO, Portsmouth Atlantic Insurance
For higher-value and waterfront homes, we compare our six high-value home carriers: Chubb, Cincinnati, Hanover, Openly, National General and Andover. For the very largest homes, we look to Chubb and Cincinnati. 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.
Can you rent a Falmouth home short term?
Yes, but the rules are changing. Today, Falmouth’s rental property bylaw (Chapter 172) says anyone who offers a building or part of one for rent as living space must first register with the town’s Health Agent, who sets the legal occupancy, generally two people per bedroom over 100 square feet. The registration runs through December 31 of each year, and the certificate has to be posted in the rental. The town takes rental permit applications online through its PermitEyes system.
Starting January 1, 2027, a new short-term rental bylaw adopted at the April 7, 2026 Town Meeting adds a town license, according to the Cape Cod Times and the Falmouth Enterprise. As reported, the license is good for two years and each rental needs a local operator who is available around the clock and lives within 20 miles. Occupancy is two people per bedroom plus two per unit, with at least one off-street parking space per bedroom. One owner can hold no more than three licenses, certain corporate and investment ownership is barred, and rentals must also be registered with the state. The license fee was still to be set when the bylaw passed, so check with the Falmouth Health Department before you list for 2027.
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.
What about condos, boats, auto and umbrella?
For a Falmouth 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. Every carrier we write with insures condos except Progressive and Openly. Our guides to condo insurance vs. homeowners insurance and HOA master policies explain 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 says Falmouth harbors are wait-listed. You can apply each year between January 1 and March 15, residents and non-residents alike, and moorings don’t convey with a property, so buying a waterfront house doesn’t give you the seller’s mooring. 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. For collector and high-value cars we compare Cincinnati, Hagerty, Hanover and Progressive.
An umbrella policy adds liability limits over your homes, cars and boat. It is worth a close look if you rent the Falmouth house, have a dock or pool, host guests on a boat or own more than one home, and we check that the umbrella carrier accepts any rental exposure.
- Your flood zone from FEMA’s map (AE, AO, VE or other) and any elevation certificate
- Your current declarations page, including any wind or named storm deductible, as a percentage and in dollars
- How many months a year the home is occupied, and who checks on it when it is empty
- Heat, water shutoff, any leak or low-temperature monitoring, and whether the basement takes on water
- Whether the home is in one of Falmouth’s seven local historic districts
- Rental plans, your town rental registration, and your plan for the 2027 short-term rental license
- For condos: the master policy, the master deductible and the bylaws
- Boats and moorings, your cars, and your current liability and umbrella limits
Falmouth home insurance FAQs
Can an insurance agency in New Hampshire insure my home in Falmouth, MA?
Yes, if the agency is licensed in Massachusetts. Portsmouth Atlantic Insurance is licensed in Massachusetts and insures Falmouth homes, condos, cars and boats from our Portsmouth, NH office, by phone, email or video.
Do I need flood insurance in Falmouth?
If the home is in a Special Flood Hazard Area, such as Zone AE, AO or VE on Falmouth’s July 16, 2014 FEMA map, 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 Falmouth 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. On the FAIR Plan, the Barnstable County minimum is 2%, rising to 5% at higher limits within half a mile of the coast.
Do I need a license to rent my Falmouth home short term?
Today Falmouth requires rental registration with the town Health Agent. Starting January 1, 2027, the short-term rental bylaw adopted at April 2026 Town Meeting adds a two-year town license and a local operator requirement. 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 a local historic district affect insurance on a Falmouth home?
It can affect the rebuild. In Falmouth’s seven local historic districts, work visible from a public way needs a Certificate of Appropriateness or administrative review before a building permit is issued. Ask about rebuild cost, ordinance or law coverage and how long additional living expense coverage lasts.
Does buying a waterfront home in Falmouth come with a mooring?
No. The town Harbormaster says moorings don’t convey with a property, and Falmouth harbors are wait-listed. Insure the boat with its own policy, since homeowners policies offer limited watercraft coverage, and consider an umbrella over the home, auto and boat.
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 reference (named storm deductible and occasional rental rules)
- Massachusetts Office of Coastal Zone Management, “CZM Cape Cod and Islands Region”
- FEMA, National Flood Hazard Layer (Falmouth 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)
- Town of Falmouth Zoning Bylaw, Article 7, Overlay Districts (Floodplain Overlay District)
- Town of Falmouth, “Falmouth FEMA Flood Zones Map” (PDF), from the town’s Town Maps page
- Glen A. Rogers, Falmouth Fire Rescue Department, “Understanding the Effects of Hurricane Storm Surge in Falmouth, MA,” via the Town of Falmouth
- Town of Falmouth, “Historical Commission”
- Town of Falmouth, “Historic District Maps”
- Falmouth Historic District Commission, “Local Historic District Rules and Regulations”
- Town of Falmouth Code, Chapter 172, Rental Property
- Town of Falmouth Health Department, “Housing and Rentals”
- Cape Cod Times, “Falmouth TM approves short-term rental rules, water discharge bylaw” (Apr. 8, 2026)
- Falmouth Enterprise, “Short-Term Rental Bylaw To Take Effect January 1” (April 2026)
- Massachusetts General Laws, Chapter 175, Section 4F
- Town of Falmouth, “Harbor Master”
- Town of Falmouth, Harbormaster FAQs (“How do I get a mooring?” and related questions)
- Steamship Authority (Woods Hole to Martha’s Vineyard ferry route)
- 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.
Year-round house, summer cottage or waterfront home, we’ll compare carriers from our Portsmouth office.
Talk to our Portsmouth team: (603) 431-4020 · Request a Falmouth home insurance quote
By Jon Merwin, Founder and CEO
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