How Bankrate chose the best home insurance companies in Maine
To find the best Maine homeowners insurance options, Bankrate reviewed several points of data, including third-party scores and ratings and coverage options. This information was used to calculate a Bankrate Score for each homeowners insurance provider based on a five-point scale. The better a company scores across the different research categories, the higher its overall Bankrate Score. By using our researching and scoring model, homeowners in Maine can get a snapshot of how well an insurer may fit their needs.
- The average cost of homeowners insurance in Maine is $944 per year for $250,000 in dwelling coverage.
- Home insurance in Maine is nearly 72% less than the national average annual rate of $1,383.
- USAA, State Farm and Nationwide received the highest Bankrate Scores for homeowners insurance in Maine.
Best home insurance companies in Maine
The top three Maine homeowners insurance companies on our list are USAA, State Farm and Nationwide. The Hanover and MMG are other strong contenders and round out the list. To find the best homeowners insurance companies in Maine, Bankrate analyzed current quoted premiums provided by Quadrant Information Services from several national and regional homeowners insurance carriers.
Reviewing the rates revealed that the 2022 average cost of home insurance in Maine is $944 per year for $250,000 in dwelling coverage. We also reviewed the 2022 J.D. Power Property Claims Satisfaction Study, which looks at how well a company processes claims and interacts with policyholders, as well as each company’s financial strength ratings from AM Best. Below are the companies that excelled.
|Bankrate Score||Average annual premium for $250k in dwelling coverage||J.D. Power score|
|The Hanover||3.2||$1,287||Not rated|
|MMG||Not rated||$874||Not rated|
*Not officially ranked with J.D. Power due to eligibility restrictions
Best for: Military-focused coverage
USAA, the nation’s fourth-largest home insurer according to market share data from the Insurance Information Institute (Triple-I), offers insurance products exclusively to members of the military community and their immediate family members. If you qualify for USAA’s coverage, your homeowners insurance policy may include coverage geared toward active duty 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
Best for: Bundling policies
State Farm is the largest homeowners insurance carrier in the U.S., with 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 exclusive agents throughout Maine. State Farm’s standard homeowners policy packages include several optional coverage types, like keepsakes coverage and coverage for sports or musical equipment. While State Farm ranked above average for property claims satisfaction, it has a higher-than-baseline consumer complaint index as reported by the National Association of Insurance Commissioners (NAIC). However, it earned an A++ (Superior) financial strength rating from AM Best, the highest level achievable.
Learn more: State Farm Insurance review
Best for: Numerous discounts
If you need home insurance in Maine, Nationwide could be a good choice since it offers both affordable rates and a large selection of coverage options. Nationwide offers standard homeowners coverage, but you can personalize your policy to better fit your exact needs with additional protections such as Better Roof Replacement coverage, which replaces your roof with improved shingles and materials if it is damaged from a covered loss. Although it is not the least expensive option on our list, Nationwide offers a range of discounts, including a home renovation savings or gated community discount.
Learn more: Nationwide Insurance review
Best for: Strong customer service ratings
The Hanover is a New England-based insurer that offers policyholders several options to personalize 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, likely because it only offers homeowners coverage in 20 states and Washington, D.C. The Hanover has a below-industry-baseline overall consumer complaint index score of 0.49 as of 2021, 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
Best for: A “local” touch
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 score from AM Best.
How much is homeowners insurance in Maine?
The average cost of Maine homeowners insurance is $944 per year for $250,000 dwelling coverage according to the rate data from Quadrant Information Services, which is 32% less than the national annual average cost of $1,383.
Although the average cost of Maine home insurance is well below the national average, Mainers do pay more on average than homeowners in surrounding states. Homeowners in New Hampshire, for example, pay an average annual premium of $731 per year, and homeowners in Vermont pay an average of $668 per year. This could be because much of Maine is forested and relatively remote, while also incurring significant impacts from Atlantic Ocean weather events, such as tropical cyclones and nor’easters.
Blizzards and inclement weather can have a major impact on structures, all of which is considered when homeowners insurance providers assess the risk for the area. Additionally. Maine is becoming increasingly at risk for wildfires, as are other New England states, which can cause severe damage or destroy your home. Homeowners insurance in Maine is not legally required, but with the potential perils, it could help provide critical financial protection for your investment. Additionally, if you have a lender, homeowners insurance will likely be required.
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 part of your sewer backup and overflow coverage. Most insurers offer sewer backup and overflow coverage as an endorsement to your standard home policy for minimal additional premium.
- 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 separate 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 coverage types 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.