Living in Cohasset means you get to wake up to Atlantic Ocean views, stroll through the historic harbor, and enjoy one of Massachusetts' most charming coastal communities. But here's what many new residents don't realize until it's too late: protecting your slice of this South Shore paradise requires more than just standard homeowners insurance. With a median home value of $1.4 million and waterfront properties climbing even higher, getting your insurance right isn't just important—it's essential.
This guide breaks down everything you need to know about insurance in Cohasset, from navigating flood zones to understanding why your premiums jumped in 2025. Whether you're buying your first home near Cohasset Common or you've been here for decades, you'll find practical advice tailored to our unique coastal risks.
Why Cohasset's Coastal Location Changes Your Insurance Needs
Most insurance carriers treat homes within three miles of the coast differently. That means virtually every property in Cohasset faces stricter underwriting requirements and typically higher premiums. It's not arbitrary—coastal homes face genuine exposure to nor'easters, hurricanes, and the kind of blizzards that can cause serious damage. In May 2025, when nearby Norton flooded with six inches of rain overwhelming storm drains, it was a reminder that Massachusetts weather doesn't play around.
Here's the critical part: your standard homeowners policy doesn't cover flood damage. Not from coastal surge, not from heavy rain, not from rapid snowmelt. If water comes into your home from outside, you need separate flood insurance. Given that more than half a million Massachusetts residents are expected to face flooding risks over the next century due to rising sea levels, this isn't something you can skip. The average flood claim payout from FEMA over the past five years was $69,000—not exactly pocket change.
If your property is in a high-risk flood zone and you have a mortgage, your lender will require flood insurance. You can typically get coverage through the National Flood Insurance Program at subsidized rates, with Massachusetts averaging $1,142 annually for a single-family home. Coastal properties often pay more than this average, but it's still far less expensive than rebuilding after a major storm without coverage.
Understanding 2025 Rate Increases and What's Driving Them
If your homeowners insurance premium jumped in 2025, you're not alone. Massachusetts homeowners saw average increases of 16% this year, slightly above the national average of 11.3%. After relatively stable rates from 2020 to 2022, premiums rose 10.5% in 2023 and 7.9% in 2024, before this latest bump.
What's behind these increases? Three main factors. First, severe weather events like nor'easters and hurricanes have become more frequent, forcing insurers to reassess coastal risks. Second, construction costs have skyrocketed—materials and labor are more expensive, so insurers need to charge more to cover potential claims. Third, with home values in Cohasset up 1.6% year-over-year and waterfront properties commanding premium prices, the cost to rebuild these high-value homes keeps climbing.
The good news? You have options. The average home insurance cost in Massachusetts is $1,518 annually, but rates vary dramatically by carrier. Norfolk & Dedham Mutual Insurance Company, a local insurer serving the region, offers some of the most competitive rates at around $648 per year for Norfolk County properties. State Farm averages $705 annually statewide, while Quincy Mutual comes in at $819. Shopping around isn't just smart—it can save you hundreds or even thousands of dollars.
Coverage Considerations for High-Value Waterfront Properties
With waterfront homes in Cohasset listing at a median price of $1.87 million, standard homeowners policies often fall short. Here's what you need to think about beyond basic coverage. First, make sure your dwelling coverage reflects actual rebuilding costs, not just market value. The median sale price per square foot jumped 51.3% year-over-year to $779, which tells you construction costs are rising fast. Being underinsured by even 10% on a $1.5 million home means you're on the hook for $150,000 out of pocket after a total loss.
Second, consider wind and hurricane deductibles carefully. Coastal policies often have separate deductibles for wind damage, sometimes calculated as a percentage of your dwelling coverage rather than a flat dollar amount. A 2% wind deductible on a $1.5 million home means you pay the first $30,000 of damage—that's a big hit if a nor'easter tears off your roof.
Third, don't overlook liability coverage. In an affluent community where someone slipping on your dock or getting injured at a gathering could lead to significant medical bills and legal fees, carrying at least $500,000 in liability is wise. Many Cohasset homeowners opt for umbrella policies that provide an additional $1-5 million in liability coverage for a few hundred dollars a year.
Auto Insurance and Other Coverage Needs
While we're focused on property insurance, don't forget that Massachusetts is a no-fault auto insurance state with specific minimum requirements. You'll need at least $20,000 per person and $40,000 per accident in bodily injury coverage, plus $5,000 in property damage liability. Given Cohasset's median household income of $187,060, many residents carry significantly higher limits to protect their assets.
If you own a boat—and many Cohasset residents do, given our maritime heritage—you'll need separate watercraft insurance. Your homeowners policy might cover a small dinghy, but anything with significant value or horsepower needs its own policy. The same goes for RVs, motorcycles, and other recreational vehicles.
How to Get Started and Save Money
Start by getting quotes from at least three carriers, including local specialists who understand coastal risks. Companies that write policies specifically for waterfront homes often provide better coverage and claims service than generic national carriers. Ask about bundling discounts—combining home and auto insurance typically saves 15-25%. If your home has updated electrical, plumbing, or roof, mention it. Modern upgrades can qualify you for discounts of 10% or more.
Before storm season hits, document your belongings with photos or video. Note and photograph all existing damage to your property—this helps avoid disputes about whether damage is new or pre-existing when you file a claim. Keep this documentation somewhere safe, ideally in cloud storage where water damage can't reach it.
Finally, review your policies annually. With Cohasset's real estate market moving fast—homes sell in just 17 days on average—property values and replacement costs change quickly. What was adequate coverage last year might leave you exposed today. An annual insurance checkup takes 30 minutes and could save you from catastrophic financial loss.
