Your Massachusetts condo insurance was non-renewed or spiked — coast, snow, and the FAIR Plan

Massachusetts at a glance

Coastal exposure and the FAIR Plan

Coastal condos (Boston waterfront, the North and South Shores, Cape Cod, and the Islands) face nor'easter and hurricane exposure that has pushed carriers to non-renew, leaving the Massachusetts FAIR Plan (MPIUA) as the backstop. The FAIR Plan covers fire and wind/hail but not flood, and often at a higher cost and deductible — so a building on it is paying more for narrower coverage.

Deductibles and the flood gap

Near the coast, named-storm deductibles can exceed 5% of rebuild value, and standard master policies exclude flood. For a building in a FEMA A/AE zone, NFIP flood coverage is separate and often expensive — and if the association's flood limits fall short of replacement cost, the gap becomes an owner assessment after a loss.

What's required

Condos must insure the common elements (c. 183A § 3), and associations over 10 units need a fidelity bond — but earthquake and flood aren't mandated. Reading the master policy's deductible schedule against your individual HO-6 is the only way to see how much exposure sits with you.

Sources

• M.G.L. c. 183A § 3 — association insurance of common areas(High)
• Massachusetts FAIR Plan (MPIUA)(High)
• M.G.L. c. 183A § 10 — fidelity & insurance powers(High)

Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Massachusetts-licensed professional.