Best homeowners insurance in Maine 2021

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If you are one of the 71.2% of Mainers who own their home, you know that Maine is a great state to live in for many reasons. One of those reasons is the low cost of Maine home insurance, which averages $982 annually for $250k of dwelling coverage.

Despite the sometimes severe winter weather, Maine is not known for natural disasters such as hurricanes, tornadoes or earthquakes — all of which increase insurance premiums for homeowners in states like number-one-ranked Oklahoma, where residents pay an average of $4,067 for homeowners insurance each year.

Best home insurance companies in Maine

To find the best Maine homeowners insurance companies, we started our search by looking at the companies that are writing the most policies in the state — they have a good understanding of the conditions affecting coverage in Maine. We also reviewed the 2020 J.D. Power Home Insurance Study, which looks at well a company interacts with its customers. Here are the companies that excelled:

Home Insurance Company Average Annual Premium for $250K Liability J.D. Power Score
State Farm 829/1000 $843
Allstate 829/1000 $1,151
The Hanover N/A $1,646
USAA 889/1000 $1,451
MMG Insurance N/A $898

Quadrant Information Services, 2020

State Farm

The largest insurance underwriter in Maine, State Farm insures more than 12% of the state’s homes. It also scores an A++ from AM Best, which indicates that the company is financially sound and able to pay out on claims. State Farm is able to offer a wide range of coverages, including condo, renters, life, farm and ranch, auto, health, business and more.

Allstate

Allstate does not rank quite as high as State Farm with J.D. Power, earning a score of 814 to State Farm’s 831, but that still puts it near the top of the list. Allstate offers a range of comprehensive policy options that allow you to tailor your coverage to fit your circumstances, and a nice array of discounts can bring down your costs significantly. Allstate also offers insurance for auto, renters and condos, among other types.

The Hanover

The fourth largest company in Maine by market share, The Hanover offers three tiers of coverage, with upper levels including extras like water back-up and sump pump overflow coverage that are not part of most standard policies. The Hanover is known for excellent customer service, which is backed by the National Association of Insurance Commissioners’ (NAIC) rating of 0.65 for customer complaints, where anything less than 1.0 indicates that the company has few complaints. This company offers auto, umbrella, watercraft, recreational vehicle and other common coverage options.

USAA

This company ranks at the top of the 2020 J.D. Power Home Insurance Study, but only sells policies to current or retired military members and their families. Its policies are competitively priced and geared toward military members. Along with special coverages like for military uniforms, USAA also offers insurance policies for mobile homes, condos and other home properties.

MMG Insurance

This is a regional insurer, headquartered in Presque Isle, Maine, that has been writing policies in the state for more than 120 years. MMG Insurance agents have hands-on experience with Maine’s weather conditions and the company has a good reputation for customer service. The company offers a comprehensive array of insurance coverage, including auto, umbrella, watercraft, snowmobile and several types of business insurance.

Average cost of homeowners insurance in Maine

The average cost of Maine homeowners insurance is relatively low at $982 a year for a $250k dwelling. This is nearly $500 cheaper than the national average of $1,477 per year. Rates for Maine are fairly low because, even though it is a coastal state, it is spared much of the violent weather that is common with southern states like Florida or Louisiana. Compared to Florida’s average annual rate of $1,736 and Louisiana’s average of $2,297, home insurance in Maine is significantly cheaper because it does not get the violent weather like hurricanes and tornadoes that Florida and Louisiana tend to get. But that does not mean this is exactly what you will be paying. Every insurer uses its own proprietary formula to determine your policy costs.

Home insurance considerations in Maine

When shopping around for home insurance, it’s important to consider your state’s geographic location since that will primarily affect its climate. Maine’s climate is mostly known for high winds, rain, and humidity which are factors to consider that can lead to property damage.

Maine common causes of loss

Maine is located on a coast. The coastal parts of Maine especially are known for high winds, rain and humidity. Climate can be one of the causes of loss in Maine. The following losses are common:

  • Flooding: Flooding is a common cause of loss in Maine as floods can happen during any season. During the spring, summer and fall months, heavy rainfall can cause flooding, while the winter can bring heavy snow.
  • Water backup: Due to the heavy rain and snowfalls in Maine, water backup can cause damage to your property and land.
  • Sump pump failure: Sump pump failure is another common loss from heavy water backup, rainfall, and backed up snow.

Home insurance coverages in Maine

Coverage for the structure of your home, your belongings, liability protection and medical protection for guests are all standard among homeowners insurance policies. Purchasing additional coverage can also pay for potential losses caused by state factors. Because Maine is known for unstable climate conditions with heavy rain, humidity and high winds, it’s important to search for home insurance policies that will cover the potential resulting damage.

  • Flood insurance: Many homeowners believe this is only needed if you live in coastal Maine, but it is something to consider no matter where your home is. Your home may be in a flood zone if it is near a pond, creek or even a culvert that may overflow with heavy rain or spring snowmelt. Most insurers offer flood insurance, which is administered through the federal government’s National Flood Insurance Program.
  • Sump pump and water backup: Some water damage may be covered under your basic policy, but if the backup results from an overflow at street level, you may need an added rider to cover it.
  • Other structures coverage: If you have a barn, shed, gazebo or detached garage on your property (or other detached structures), this will help you replace them if they are damaged or destroyed. Note that any structure that is attached to your home, such as an attached garage or fence, is generally covered by your basic dwelling insurance. If it’s a free-standing structure, however, it probably isn’t.
  • Identity theft restoration: Some insurers offer coverage for the cost of rebuilding your identity if stolen. These costs may include legal fees, lost wages and other related costs.
  • Business property: If you run a business out of your home, or store business items at your home, you will want extra coverage. If you sell on eBay or Etsy, for example, ask your agent if you would be covered if your inventory was damaged.

Frequently asked questions

What is the best homeowners insurance in Maine?

There is no one option for the best Maine homeowners insurance. Since every individual and every property is unique, so are the insurance policies that cover them. To find the best coverage for you, we recommend that you get online quotes or talk to agents at several different insurers to see who has the best prices for your circumstances.

How do I get homeowners insurance in Maine?

To get homeowners insurance, you’ll need to give the agent your name, address and other personal information, as well as information on your home. It’s helpful if you know, for example, when your roof was last replaced and how old your furnace is.

Do I need flood insurance in Maine?

You may, and not just if you are on the coast. For one thing, Maine has more than 6,000 lakes and ponds, and if you live near one of them you could be at risk of flooding. The national average flood insurance claim is more than $42,000, so even if you are not near a large body of water, it pays to consider it.

Do I have to have homeowners insurance in Maine?

The state of Maine does not mandate homeowners insurance by law. But if you have a mortgage on your home, your lender will probably require you to carry a homeowners insurance policy. Unless you can afford to pay out of pocket for the cost of replacing your home if it is damaged or destroyed, it is important to have a policy on your property.

Methodology

Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Rates are determined based on 2020 Quadrant Information Services data.