Second homes · Vacation homes · Coastal · Massachusetts
By Jon Merwin, Founder & CEO, Portsmouth Atlantic Insurance · Reviewed by Jon Merwin, licensed insurance agent
Published October 2026 · Updated October 6, 2026
- Portsmouth Atlantic Insurance is licensed in Massachusetts, among 10 states, and insures second homes and vacation homes from Cape Cod and the Islands to the North Shore and the Berkshires.
- Census data shows that more than half of all homes on Nantucket and Martha’s Vineyard, and about a third on Cape Cod, are held for seasonal or occasional use. Those three counties hold about 64 percent of the state’s seasonal homes.
- Many Massachusetts policies carry a separate wind or named storm deductible, which the Division of Insurance says usually runs from 1% to 5% of the insured value of the home. The DOI says the largest are in coastal Bristol, Plymouth, Barnstable, Dukes and Nantucket counties.
- Flood is excluded from homeowners policies. Coastal second homes need a separate NFIP or private flood policy, ideally lined up before closing.
- Massachusetts law requires short-term rental operators to carry liability insurance for each rental and to tell their home insurer before they start renting.
Looking for second-home or vacation home insurance in Massachusetts? Portsmouth Atlantic Insurance is licensed in Massachusetts and writes a lot of Massachusetts business from our office in Portsmouth, NH. We insure summer cottages on the Outer Cape, shingled houses on Nantucket and Martha’s Vineyard, beach houses on the North and South Shores and ski or lake homes in the Berkshires. As an independent agency, we compare 30+ carriers. That matters for a second home, because carriers differ a lot on vacancy, rentals, wind deductibles and coastal property, and the right one depends on how you actually use the house.
Can a New Hampshire agency insure my Massachusetts vacation home?
Yes. We hold a Massachusetts license and work with Massachusetts homeowners by phone, email or in person at our Portsmouth office. Many of our clients own more than one home, for example a primary home in New Hampshire, Connecticut or the Boston area and a summer place on the Cape. We can insure both, line up the renewal dates and set one umbrella policy over everything. For statewide coverage notes, see our Massachusetts homeowners insurance page.
Where are the second homes in Massachusetts?
Mostly on the Cape and Islands. In the Census Bureau’s 2019-2023 American Community Survey, about 3.8 percent of all housing units in Massachusetts were vacant because they are held for seasonal, recreational or occasional use, the Census category that covers most second homes and vacation homes. On Nantucket the share is about 56.7 percent, on Martha’s Vineyard (Dukes County) about 55.3 percent and on Cape Cod (Barnstable County) about 34.2 percent. Together those three counties hold 73,532 of the state’s 115,211 seasonal homes, or about 64 percent.
Source: U.S. Census Bureau, American Community Survey 2019-2023 5-year estimates, tables B25004 (vacancy status) and B25001 (housing units), from the ACS summary file. Our calculation: seasonal, recreational or occasional-use units divided by total housing units. Estimates carry margins of error; for example, Barnstable County’s figure is 56,683 units, plus or minus 1,207. Very small bars are drawn at a minimum width so the label stays readable.
The Berkshires are the other big second-home area, at about 12.1 percent of Berkshire County’s homes. Along the North Shore and South Shore the shares are lower, but the seasonal homes there tend to sit right on the water, in places like Plum Island, Rockport, Duxbury and Scituate, where wind and flood matter most.
What does a Massachusetts second-home policy need to get right?
A second home is insured a little differently from the house you live in. Carriers want to know how often someone is there, who checks on it and whether it’s ever rented. Getting those answers right up front is what keeps a claim from being disputed later. Our second and seasonal home insurance guide covers the basics; for Massachusetts, these are the points we spend the most time on:
- How the home is used. A home you use on weekends all year, a summer-only cottage, a house you rent for part of the season and a house that’s rented full time can each need a different policy form. Tell us the real pattern, including any rentals.
- Winter vacancy. Many Cape and Islands homes sit empty from fall to spring. Policies often have conditions for heat, draining the water system or regular checks while the home is unoccupied, and a frozen pipe in an empty house can run for days before anyone notices. Ask what the policy requires, and consider low-temperature and water-leak sensors.
- Who looks after it. Note the caretaker or property manager and how often they visit. Some carriers ask for this, and it helps after a storm.
- Replacement cost. Insure what it would cost to rebuild the house, not what it would sell for. The Massachusetts Division of Insurance (DOI) reminds homeowners that labor and construction costs have risen, so you may need to raise your dwelling coverage to rebuild at today’s construction costs. On the Islands, getting materials and crews there adds to that.
- Liability. Guests, renters, docks, boats and pools all add exposure. An umbrella policy can sit over your primary home, your second home and your cars if the underlying limits line up.
How do wind and named storm deductibles work on the Cape and Islands?
Most Massachusetts coastal policies carry a second deductible for wind or named storms. The DOI says it usually runs from 1% to 5% of the insured value of the home, can sometimes be a fixed amount instead, and may apply per event, per season or per calendar year. In its report on the 2024 Massachusetts home insurance market, the DOI said the largest wind deductibles were in the coastal parts of Bristol, Plymouth, Barnstable, Dukes and Nantucket counties, which is where most of the state’s second homes are.
| Location | FAIR Plan minimum named storm deductible for higher dwelling limits |
|---|---|
| Anywhere in Dukes or Nantucket County | 5% of the dwelling limit |
| Barnstable County, within half a mile of the coast | 5% of the dwelling limit |
| Barnstable County, more than half a mile from the coast | 2% of the dwelling limit |
| Rest of Massachusetts, within half a mile of the coast | 2% of the dwelling limit |
| Rest of Massachusetts, more than half a mile from the coast | A flat-dollar minimum instead of a percentage |
The table shows the FAIR Plan’s rules because they are published. Private carriers file their own, and two quotes on the same Cape house can treat named storms very differently. Read the declarations page, and ask us to translate the percentage into a dollar figure for your home before you choose.
Does a Massachusetts vacation home need flood insurance?
If it’s near the water, almost always. The DOI reminds homeowners that flood damage isn’t covered by a standard home insurance policy, whether it comes from storm surge, a high tide or heavy rain. You can buy flood coverage from the National Flood Insurance Program (NFIP) or from a private insurer. Look up the address on FEMA’s Flood Map Service Center, and ask the seller or the town whether an elevation certificate exists.
- Waiting period. FloodSmart says NFIP coverage goes into effect 30 days after purchase, with exceptions, including a policy bought while making, increasing, extending or renewing a mortgage. If you’re buying a vacation home, line up flood before closing.
- Program status. As of October 6, 2026, the Congressional Research Service reports that the NFIP is authorized through December 11, 2026.
- NFIP limits. NFIP building and contents limits are capped by federal rules and can fall short of the rebuild cost of a larger waterfront home. And under the NFIP’s standard dwelling policy, replacement cost settlement applies only to a single-family home that is your principal residence. A second home is settled at actual cash value, meaning depreciation is subtracted. That’s one reason some second-home owners add excess flood coverage or use a private flood policy.
- Private options. Private flood carriers we work with include Flow Flood, Neptune Flood, Beyond Floods, The Flood Insurance Agency, CatCoverage and Aon Edge. Which ones can write a particular home depends on the property.
Our flood insurance page explains the options in more detail.
We’ll compare carriers for wind, flood, vacancy and rental use and line it up with your primary home.
Talk to our Portsmouth team: (603) 431-4020 · Start a Massachusetts second-home quote
Can I rent out my Massachusetts vacation home?
You can, but the insurance has to match. Under Massachusetts law (Chapter 337 of the Acts of 2018), a short-term rental operator must carry liability insurance of at least $1 million to cover each short-term rental, unless the rental is offered through a hosting platform that carries equal or greater coverage. The same law requires you to notify your home insurer before you start renting, and it allows homeowners insurers to exclude claims that come from short-term rentals. The DOI warns that an insurer may have a legal right to cancel your coverage if you don’t tell it.
The state also requires short-term rental operators to register each property with the Department of Revenue (DOR), get a Certificate of Registration and post it at the property. Cities and towns can have their own registration or licensing rules on top of that, so check with the town too.
| How you use the home | What it usually needs | What to ask |
|---|---|---|
| Family use only, all year or seasonal | A homeowners policy written for a secondary or seasonal home | Vacancy and heat conditions, wind deductible, flood |
| Family use plus a few weeks of rentals | A second-home policy that allows occasional rentals, or an endorsement | How many rental weeks the policy allows, and whether liability covers renters |
| Regular short-term rentals through a platform | Coverage that meets the state liability requirement, from your policy, the platform or both | Whether the policy excludes short-term rentals, and how the platform’s coverage applies |
| Rented to long-term tenants | A landlord or dwelling fire policy instead of homeowners | Loss of rents, liability and tenant requirements |
If you rent to tenants for months at a time, a landlord insurance or dwelling fire policy is usually the better fit. Cincinnati, which we write in all 10 of our states, offers dwelling fire policies alongside its home and umbrella coverage.
What if no insurer will write my Cape or Islands home?
Because we work with 30+ 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 in Massachusetts is the Massachusetts Property Insurance Underwriting Association (MPIUA), known as the FAIR Plan. The DOI describes FAIR Plan coverage as basic property insurance. It doesn’t cover flood, and as of 2025, new FAIR Plan policies for properties in Special Flood Hazard Areas in communities overseen by the Office of Coastal Zone Management also require a separate flood policy. CZM’s Cape Cod and Islands region covers every town from Bourne to Provincetown, plus Martha’s Vineyard, Nantucket and the Elizabeth Islands.
| FAIR Plan rental rule | What it says |
|---|---|
| Year-round primary or secondary home | May be rented occasionally for up to 12 weeks a year |
| Seasonal property | May be rented occasionally for up to 4 weeks a year |
We walk through how a FAIR Plan policy compares with a regular policy before you decide, and we can keep checking the regular market at renewal.
How are Massachusetts vacation condos and high-value second homes insured?
Condos. A condo unit-owner (HO-6) policy covers your unit, belongings and liability and works alongside the association’s master policy. Every carrier we write with insures condos except Progressive and Openly. Read the master policy and bylaws so your walls-in coverage and loss assessment limits fit, and check the association’s rules before you rent the unit.
Higher-value homes. For larger second homes on the Cape, the Islands or the coast, we compare our six high-value home carriers: Chubb, Cincinnati, Hanover, Openly, National General and Andover, and all six write in Massachusetts. These policies often offer extended or guaranteed replacement cost and can schedule jewelry, art and collections kept at the house. Chubb and Cincinnati auto are available only when packaged with a Chubb or Cincinnati home policy. Our coastal Massachusetts high-value home insurance page goes deeper on rebuild costs and wind deductibles for larger homes.
“Inflation keeps moving the goalposts on what it costs to rebuild, and a second home that hasn’t had its coverage looked at in a few years is often the furthest behind. A lot of homes on the Cape and Islands need much higher dwelling coverage than they carried even a few years ago. The good news is that carriers are expanding their appetite for higher-value homes, so owners have more good choices than they used to.”— Jon Merwin, Founder & CEO, Portsmouth Atlantic Insurance
Can one agent insure my Massachusetts vacation home and my primary home?
Yes, and it usually makes the coverage cleaner. We’re licensed in 10 states, including Massachusetts, New Hampshire, Maine, Vermont, Rhode Island and Connecticut. With both homes in one place, we can line up the renewal dates, match liability limits so one umbrella sits over both homes and your cars, and see gaps that are easy to miss when two agents each see half the picture. If you also own a place farther north, see our Maine second-home and Vermont second-home pages.
- Your current declarations page, including any wind or named storm deductible, as a percentage and in dollars.
- How the home is used: weeks you’re there, weeks it’s rented and months it sits empty.
- Your winter plan: heat setting, draining, sensors and who checks the house.
- A current rebuild cost estimate.
- Flood zone, elevation certificate and any NFIP or private flood policy.
- For rentals: your DOR Certificate of Registration, any town license and how the platform’s liability coverage applies.
- For condos: the association’s master policy, bylaws and rental rules.
- Valuables, boats and golf carts kept at the house.
Frequently asked questions
Can a New Hampshire insurance agency insure my vacation home in Massachusetts?
Yes. Portsmouth Atlantic Insurance is licensed in Massachusetts, among 10 states, and insures second homes and vacation homes on Cape Cod, the Islands, the North and South Shores and in the Berkshires from our Portsmouth, NH office.
Is second-home insurance different from regular homeowners insurance in Massachusetts?
Often, yes. Carriers look at how often the home is occupied, who checks on it, whether it is rented and how long it sits empty. Policies for seasonal homes can have conditions for heat or draining the water system while the home is vacant, so tell your agent how the home is really used.
Do I need special insurance to rent my Massachusetts home short term?
You may. Massachusetts law requires short-term rental operators to carry at least $1 million in liability coverage for each rental, unless the hosting platform carries equal or greater coverage, and to notify their home insurer before renting. Homeowners insurers are allowed to exclude claims from short-term rentals.
What is a named storm deductible on Cape Cod?
It is a separate deductible that applies when a named storm or wind causes damage. The Massachusetts Division of Insurance says these usually run from 1% to 5% of the insured value of the home. The Division of Insurance reports that the largest wind deductibles are in the coastal parts of Bristol, Plymouth, Barnstable, Dukes and Nantucket counties, and the FAIR Plan sets a 5% minimum at higher dwelling limits within half a mile of the Cape coast and anywhere on Nantucket or Martha’s Vineyard.
Does homeowners insurance cover flooding at a Massachusetts beach house?
No. Flood from storm surge, high tides or heavy rain is excluded from homeowners policies. You need a separate NFIP or private flood policy. NFIP coverage generally starts 30 days after purchase, unless an exception applies, such as a policy bought when you close on a mortgage.
What if no insurer will write my vacation home in Massachusetts?
An independent agency can check many carriers. If none will write the home, the Massachusetts FAIR Plan (MPIUA) is the market of last resort. It offers basic property coverage, does not cover flood, and limits occasional rentals to 12 weeks a year for a year-round home or 4 weeks for a seasonal property.
Sources
- U.S. Census Bureau, American Community Survey 2019-2023 5-year estimates, table B25004 “Vacancy Status” (with table B25001 “Housing Units”)
- Massachusetts Division of Insurance, “Division of Insurance Reminds Massachusetts Residents to Prepare Now for a Hurricane” (Aug. 8, 2024)
- Massachusetts Division of Insurance, “The 2024 Massachusetts Market for Home Insurance”
- Massachusetts Division of Insurance, “Short-Term Rental Insurance”
- Massachusetts General Laws, Chapter 175, Section 4F, “Liability insurance and notice requirements for operators of short-term rentals and hosting platforms”
- Massachusetts Department of Revenue, “Short-Term Rentals Season Is Here”
- Massachusetts Division of Insurance, “Massachusetts Property Insurance Underwriting Association”
- Massachusetts Property Insurance Underwriting Association, “Producer Quick Reference”
- Massachusetts Office of Coastal Zone Management, “CZM Cape Cod and Islands Region”
- FEMA, National Flood Insurance Program, “Dwelling Form, Standard Flood Insurance Policy”
- 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)
This page is general information, not a policy. Coverage, forms and availability vary by state, carrier and property, and every policy is subject to underwriting. Your policy documents control.
Cape cottage, Islands house, coastal condo or Berkshires retreat, we’ll compare carriers from our Portsmouth office.
Talk to our Portsmouth team: (603) 431-4020 · Request a Massachusetts second-home quote
Reviewed by Jon Merwin, licensed insurance agent
Portsmouth Atlantic has been an independent agency since 2005, is licensed in 10 states, works with 30+ carriers and has earned over 2,000 testimonials and 1,000+ Google reviews across our two offices. Meet our team.