Best homeowners insurance in Maine of 2022
Just over 71% of Mainers own a home, and for these Maine homeowners, the cost of homeowners insurance is relatively low. According to Bankrate’s 2021 study of quoted annual premiums, the average annual premium is $956 for $250,000 of dwelling coverage. This is significantly lower than the national average annual premium of $1,312.
Although homeowners insurance in Maine is generally less expensive than it is in many other states, quality insurance coverage is still a priority for many homeowners. Homeowners insurance can help protect you against financial devastation should your home be damaged or destroyed by a covered peril and is an integral part of your financial planning. Finding a company that fits your needs is an important step to protecting your home and your financial security.
Best home insurance companies in Maine
To find the best homeowners insurance companies in Maine, Bankrate analyzed current quoted premiums from several national and regional homeowners insurance carriers. We also reviewed the 2021 J.D. Power Home Insurance Study, which looks at how well a company interacts with its customers, as well as its financial strength ratings from AM Best. These are the companies that excelled.
|Home insurance company||Average annual premium for $250K in dwelling coverage||J.D. Power score|
|The Hanover||$1,307||Not rated|
|MMG Insurance||$867||Not rated|
*Not officially ranked by J.D. Power due to eligibility restrictions
Allstate, the second-largest U.S. homeowners insurer based on market share according to the Insurance Information Institute (Triple-I), is a major national brand that offers standard coverage types like dwelling coverage, personal property coverage and liability coverage, along with more unique endorsements like yard and garden coverage and electronic data recovery coverage. Allstate’s website offers you the ability to manage your policy online, but its network of local agents across Maine can provide in-person support should you need it. Although its average annual premium is slightly higher than the state average annual premium, Allstate offers a range of discounts to policyholders to help them control their insurance costs. The company carries an A+ (Superior) financial strength rating from AM Best.
Learn more: Allstate Insurance review
The Hanover is a New England-based insurer that offers policyholders several options to customize their coverage, with options like high-value home coverage, water backup coverage and service line coverage. Although it was not rated in the 2021 J.D. Power U.S. Home Insurance Study because it only offers homeowners coverage in 20 states and D.C., The Hanover is rated highly by its policyholders for customer service and has a below-industry-average complaint index score from the National Association of Insurance Commissioners (NAIC). The Hanover’s overall score was 0.81 in 2020, indicating that the NAIC received fewer complaints about The Hanover than average. The Hanover carries an A (Excellent) financial strength rating from AM Best.
Learn more: The Hanover Insurance review
MMG Insurance is a regional insurance carrier headquartered in Presque Isle, Maine, that has been writing policies in the Pine Tree State for more than 120 years through a network of independent agents. Because MMG Insurance agents are local, they are likely to have hands-on experience with Maine’s wide array of weather conditions and common causes of property loss. The company offers two homeowners insurance options: Home Advantage and Home Advantage Ultra, each of which may be able to be tailored to the needs of Maine homeowners. Because MMG only provides homeowners insurance coverage in five states, the company is not rated by J.D. Power. However, MMG has an A (Excellent) financial strength rating from AM Best.
State Farm is the largest homeowners insurance carrier in the U.S., with nearly 18% of the market share, according to the Triple-I. State Farm offers its customers a substantial home and auto bundling discount, so if you want to keep all your insurance in one place, State Farm could be a good option. The company also has a network of local agents throughout Maine. State Farm’s standard homeowners policy packages includes several optional coverage types, like keepsakes coverage and coverage for sports or musical equipment. The company earned an above-industry-average score from J.D. Power, which indicates that policyholders are generally satisfied with its customer service. The company is rated A++ (Superior) by AM Best, the highest level achievable.
Learn more: State Farm Insurance review
USAA, the nation’s third largest home insurer, offers insurance products exclusively to members of the military community, including active-duty, veterans and their respective family members. If you qualify for USAA’s coverage, your homeowners insurance policy may include coverage geared toward military members, such as coverage for uniforms. Discounts are relatively limited, but you may be able to save by installing security features like an alarm system or by insuring your auto insurance with USAA as well, generating a bundling discount. Although USAA is not eligible for official ranking with J.D. Power due to its eligibility restrictions, the company consistently receives high scores for customer satisfaction from its policyholders. The company carries an A++ (Superior) financial strength rating from AM Best/
Learn more: USAA Insurance review
How much is homeowners insurance in Maine?
The average cost of Maine homeowners insurance is $956 per year for $250,000 dwelling coverage, which is 37% less than the national annual average cost of $1,312.
Although the average cost of Maine home insurance is well below the national average, Mainers do pay more than homeowners in surrounding states. Homeowners in New Hampshire, for example, pay an average annual premium of $724 per year, and homeowners in Vermont pay just $686 per year. This could be because much of Maine is forested and relatively remote and also incurs significant impacts from Atlantic Ocean weather events, such as tropical cyclones and nor’easters. Additionally. Maine is becoming increasingly at risk for wildfires, as our other New England states, which can cause severe damage or destroy your home.
Home insurance in Maine
When shopping for homeowners insurance, it is important to consider your state’s climate, since many common homeowners insurance claims are related to weather. Maine’s climate is mostly known for high winds, torrential rainfall, snowstorms and ice storms.
Common causes of loss in Maine
Many parts of Maine may be at risk for rain, blizzards, high winds and wildfires. Homeowners in Maine should be aware of these common homeowners insurance claims filed by residents:
- Wind damage: Maine’s northern position along the coast can bring damaging winds to your property. Strong winds from nor’easters and tropical cyclones can easily damage a home’s roof, siding, soffits and windows. Wind damage is typically included in standard home insurance policies, but you may want to confirm with your agent. Many Maine homeowners policies also include a separate hurricane deductible for named storms by the National Weather Service, which typically runs 1-5% of your home’s insured value, according to the Triple-I.
- Flood damage: Flooding is also a common cause of loss in Maine, given its proximity to the ocean. Floods can happen at any time of the year in just about any location of the state and destroy your personal belongings. Buying flood insurance as an endorsement from your insurance provider or the federally-backed National Flood Insurance Program (NFIP) may be something to consider even if you don’t live in a flood zone. You can also obtain coverage from dozens of private insurers who specialize in flood underwriting.
- Water backup: Due to the heavy rain and snow in Maine, it is not uncommon for water to back up into your home. It is often bundled with sewer backup and overflow You can find this protection available via several insurance providers as an endorsement.
- Wildfires: Wildfire damage may be more associated with the West Coast than with New England. However, wildfires are occurring more frequently in Maine and neighboring states and can destroy your home and your possessions. Wildfire coverage is typically a covered peril in a standard homeowners policy, but you should consult with your agent or insurer to determine if you need to add this coverage as an endorsement to your policy.
Other common causes of loss that Maine homeowners may want insurance coverage for are theft, vandalism and personal liability.
Home insurance coverage options in Maine
There are specific common causes of loss that Maine homeowners face. Given these added risks, you may want to consider purchasing the following additional coverages:
- Flood insurance: Standard homeowners insurance does not typically cover damage caused by flooding, however 90% of U.S. natural disasters involve flooding so it’s a coverage worth considering. If you want to purchase flood coverage, you will likely need a separate, dedicated flood insurance policy. Many insurers offer flood insurance as an endorsement to your standard home policy. Coverage is also available through the NFIP and private insurers that specialize in flood insurance.
- Water backup coverage: Water backup typically happens when a sump pump can no longer keep up with heavy rainfall and the water backs up into a basement, but backup damage can result from water backing up in any drain or sewer line. This coverage can be added as an endorsement to your home policy.
- Wildfire coverage: If you own a home in Maine, you may want to check if wildfire damage is covered on your standard policy. If not, you may need to purchase an endorsement or seperate policy.
- Identity theft coverage: Some home insurers offer ID theft coverage that includes assistance with civil judgments, criminal charges, audits or hearings related to fraud perpetrated by the “impostor”; and resolution services to reclaim your identity and restore credit.
- Replacement cost coverage: This option helps to ensure you are paid for the amount to replace your damaged or destroyed home or items, rather than for their depreciated value. Not all homeowners qualify and not all companies offer this coverage but it is typically worth the additional premium to have a much higher level of financial protection to replace your home, as well as your possessions such as furniture, electronics, clothing, jewelry and artwork.
If you are not sure what coverages you should consider adding to your homeowners insurance policy as endorsements, or perhaps purchasing a separate policy such as flood insurance, consulting with a local licensed agent may help you decide what options to choose as well as selecting the best carrier to fit your coverage needs.
Frequently asked questions
What is the best homeowners insurance in Maine?
Since every individual and every property is unique, the best homeowners insurance company will vary. To determine what company might best fit your needs, you may first want to decide what you are looking for in a homeowners insurance company. Once you know what factors matter most to you, you can obtain quotes from several different insurers and compare them.
How do I get homeowners insurance in Maine?
To purchase homeowners insurance, you will need to provide some basic information about yourself and your property, including your name, address, the year your home was built and information about any custom features the property may have. You may also be asked how old your roof is, if you have a dog and if you have filed homeowners claims with your prior insurance company.
Do I have to have homeowners insurance in Maine?
The state of Maine does not require that you purchase homeowners insurance. However, if you have a mortgage on your home, your lender will likely require you to carry a homeowners insurance policy. If you do not have a mortgage, you may be able to forgo homeowners insurance coverage, but you may want to carefully consider if you can afford to pay for the cost of repairing or replacing your home if it is damaged or destroyed. The cost of a homeowners insurance policy is typically substantially lower than what it would cost to rebuild your home and will provide you and your family with financial security and peace of mind.
Bankrate utilizes Quadrant Information Services to analyze 2021 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 will differ.