Living on Cape Cod comes with beautiful coastal views, but it also means protecting your property against certain coastal risks. On average, home insurance in Cape Cod costs $2,798 per year for a policy with $300,000 in dwelling coverage and a $1,000 deductible.

Because the area is prone to severe weather, heavy winds, and flooding, you may need extra protection beyond a basic policy to fully cover your investment. Here’s what to know about comparing homeowners insurance quotes for your Cape Cod home.1

Best home insurance companies in Cape Cod

Many reputable insurance companies offer homeowners insurance in Cape Cod, so you have a variety of options to choose from. The best home insurance company for you depends on factors such as your property’s location, the age and condition of your home, your budget, and any special risks, like flood exposure or areas with high winds.2

The following insurance companies are some of the top picks for homeowners insurance in Cape Cod.

Best company for homeowners on a budget: AIG

Best company for flood-prone areas: Chubb

Best company for older homes: Travelers

Cheapest home insurance in Cape Cod

AIG offers the most affordable rates for homeowners insurance in Cape Cod, with average annual premiums of $951 for $300,000 in dwelling coverage and a $1,000 deductible. This is well below the city-wide average of $2,798 per year.

The table below shows the average annual premiums from several insurance companies serving Cape Cod.

Cost of homeowners insurance in Cape Cod

Homeowners insurance in Cape Cod averages $2,798 per year for a policy with $300,000 in dwelling coverage and a $1,000 deductible. Policies with a $500 deductible average $2,895 per year.

Premiums in Cape Cod are notably higher than the Massachusetts state average of $1,894 per year for similar coverage.

Several factors contribute to Cape Cod’s higher premiums, including:

Cost of home insurance by dwelling coverage in Massachusetts

The cost of insuring your home increases as your dwelling coverage limits rise. A policy with higher coverage limits provides more money to rebuild or repair your home if you experience a major loss. Understanding the type of policy you have and how coverage levels affect your premiums can help you choose the right balance between protection and affordability.4

Average annual premiums for different dwelling coverage limits in Massachusetts appear in the table below.

Cost of homeowners insurance by deductible amount

Your homeowners insurance deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in after a claim. Choosing a lower deductible usually means you’ll pay more for insurance because the insurance company takes on more risk. On the other hand, selecting a higher deductible can lower your premium, but you’ll need to cover more costs yourself if you have a loss.5

The table below highlights the average annual premium in Cape Cod for $300,000 in dwelling coverage, with both $500 and $1,000 deductibles.

Average cost of home insurance in other cities in Massachusetts

Home insurance costs can vary widely between cities, and even within the same ZIP codes, in Massachusetts. Factors like proximity to the coast, distance to a fire hydrant or fire station, and local crime rates all influence rates.6

Average annual premiums for $300,000 in dwelling coverage with a $1,000 deductible in other Bay State cities are available below.

What to know about owning a home in Cape Cod

Owning a home in Cape Cod comes with some unique challenges. High property values can increase insurance premiums, especially for waterfront or historic properties. Keep in mind that rebuilding costs drive insurance needs, not just market value.

Weather-related risks are another significant consideration for Cape Cod homeowners. The area is prone to coastal storms, hurricanes, and nor’easters, which can cause wind and water damage. A standard home insurance policy typically covers wind damage but not flood damage. To protect against flooding, you need to purchase a separate flood insurance policy through a private insurance company or the NFIP.

Environmental factors like beach erosion and rising sea levels can also affect property stability and long-term value. But since it can be difficult to find insurance coverage for gradual erosion, you may want to invest in proper site maintenance.7

Finally, many insurance companies in Cape Cod and other coastal areas apply a separate deductible for wind or hurricane claims. That deductible is a percentage of your home’s insured value rather than a flat dollar amount, and it’s something to watch out for when comparing policies.