If you are one of the 71.2% of Mainers who owns their own home, you know that Maine is a great state to live in for many reasons. One of those reasons is the cost of Maine home insurance, which averages a low $882 a year, putting the state in 42nd place in the U.S. for premium costs.Home mortgage
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364925BF-22D7-405E-BBD3-A35489D76575 Created with sketchtool. <1,0001,000-2,4992,500-4,9995,000+ Find matches QUICK FACTS 47D79854-EFBD-4BA8-9B92-D5A7629F8F80 $382/year average savings through Bankrate Two-thirds fraction 2 out of 3 homes are uninsured Home insurance contract 1 out of every 20 insured homes makes a claim each year Circle with checkmark 100% of homes need insurance before getting a mortgage One of the reasons for that is that 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 Louisiana, where residents pay an average of $1,968 for homeowners insurance each year. Here are a few things to think about if you’re in the market for the best homeowners insurance in Maine: Online quotes are generally easy to get from major insurers. They’re a good way to start your search, but you’ll want to follow up with a call or visit to a local agent. Always ask about discounts, which can save you hundreds of dollars. Common ones include loyalty discounts, multi-policy discounts and a discount for paying online. Don’t settle with the first company you talk to. It’s better to get quotes from several companies so you can see who offers the best price for your coverage. Consider flood insurance, which isn’t standard on most Maine homeowners insurance policies, especially if you live on the coast or near a body of water that might flood with spring meltwater. The top home insurance companies in MaineTo 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. Next, we reviewed consumer rating organization listings, such as J.D. Power and the Better Business Bureau, which look at how well a company interacts with its customers. AM Best’s rating list gave us a sense of whether each company was on firm financial footing, while a general review of internet news and reviews told us of any litigation pending against our companies. Finally, we took a deep dive into each website, to see who was making it easiest for its customers to learn more about their policies and handle tasks like getting an online quote or paying a bill. Here are the companies that excelled: State Farm: The largest insurance underwriter in Maine, State Farm insures more than 12% of the state’s homes. There’s a good reason for that: it ranks in fourth place in J.D. Power’s U.S. Home Insurance Study, meaning that it pays attention to customer service. It also scores an A++ from AM Best, which indicates that the company is financially sound and able to pay out on claims no matter what. State Farm’s website is informational and easy to use, and it’s a cinch to do your insurance business online. As the largest insurer in the U.S., State Farm is able to offer a wide range of coverages, including condo, renters, life, farm and ranch, auto, health, business and more. Allstate: Also a solid presence in Maine, 6% of Mainers use Allstate for their homeowners insurance needs. Allstate doesn’t 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, condo, business, life, roadside, identity theft and more. 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. The National Association of Insurance Commissioners (NAIC) rates it 0.65 for customer complaints, where anything less than 1.0 indicates that the company has few complaints. The Hanover is also known for auto, umbrella, watercraft, recreational vehicle and other common coverage options. USAA: This company ranks at the top of most quality lists (J.D. Power gives it 5 out of 5 Power Circles), but since it sells policies only to current and retired military members and their families, it’s not as well known. If you fit the demographic, though, be sure to take a look at USAA. Its policies are competitively priced and geared toward military members. Coverage and service can be customized to fit your needs. USAA also offers auto, renters, rental property, condo, flood, life and additional insurance solutions geared for military members. 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. Its agents have a lot of feet-on-the-ground knowledge of Maine weather conditions and other factors that play into writing the best policies, and they have a good reputation for customer service: the NAIC gives the company an excellent 0.69 for complaints. If you’re looking for a smaller agency with good regional knowledge, MMG should be your first stop. It offers a comprehensive array of insurance coverage, including auto, umbrella, watercraft, snowmobile and several types of business insurance. Average homeowners insurance cost in MaineAccording to the Insurance Information Institute, the average cost of Maine homeowners insurance is a relatively low $882 a year. But that doesn’t mean this is exactly what you’ll be paying. Every insurer uses its own proprietary formula to determine your policy costs.Rates for Maine are fairly low because, even though it’s a coastal state, it is spared much of the violent weather that is common with southern states like Florida or Louisiana. It’s also far from Tornado Alley in the Midwest and is not on any active fault lines that might cause earthquakes. That means that insurers will not have to pay out big claim checks for natural disasters. State Average homeowners insurance cost National ranking Louisiana $1,968 1st Connecticut $1,479 11th California $1,008 32nd Maine $882 42nd Oregon $677 51st The median cost of a house in Maine in 2019 was $225,000. We gathered sample insurance rates based on a policy with $300,000 dwelling $300,000 liability worth of coverage, with a $1,000 deductible: Bangor $1,453 North Washington $1,886 Wesley $1,781 Ashland $1,201 East Blue Hill $1,215 Home insurance coverage options in MaineYour insurer breaks down your coverage into several components, some of which are more common than others. Almost every homeowners policy includes: Dwelling and hazard insurance: This covers damage to your home from a named peril. These perils include fire, smoke damage, lightning, theft, vandalism, wind, the weight of ice or snow and more. You’ll have a deductible for this coverage, and you can purchase coverage either for the actual cash value of your home or for replacement cost, which is often more expensive but would pay out whatever was needed to rebuild or repair your house, even if it was an older home that would mean higher costs in rebuilding and repairs. Personal belongings: This part of your policy will cover your belongings even if they are damaged while not at your home. If you own items of particular value, such as jewelry or electronics, you may need to buy an additional amendment, or add-on, to protect them. Liability: This will cover lawsuits if someone is injured or their property is damaged while at your house. This coverage generally starts at $100,000. Additional living expenses: If your home is badly damaged or destroyed and you cannot live in it while it’s being repaired, this will pay for hotel costs, food and other living expenses you may incur while being away. Medical payments coverage: This may or may not be part of a basic policy—ask your agent or give your policy a close reading to find out. This coverage will pay for the medical costs associated with a guest in your home who is injured, regardless of who is at fault. In addition to these standard types of coverage, there are amendments and additional coverages that you may purchase depending on where you live: Flood insurance: Many homeowners believe this is only needed if you live in coastal Maine, but it’s 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 might 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 are offering amendments that cover the costs of rebuilding your identity if it is 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’ll want extra coverage. If you sell on eBay or Etsy, for example, ask your agent if you’d be covered if your inventory was damaged. Common causes of home insurance losses in MaineThe most common claims and losses along coastal Maine are wind-related, with an average cost of roughly $10,000 to repair roofs and gutters damaged by wind. If you’re curious about what the most common claims are in your neighborhood, Allstate’s Common & Costly Claims tool allows you to plug in your zip code and see what causes the most damage in your region.Other common claims in Maine include water damage, mold remediation and sump pump backup. The most costly claim in many areas is fire, which can cause extensive damage or destruction in a very short period of time.Frequently asked questionsWhat is the best homeowners insurance in Maine?There’s no one best option for 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’re 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 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’s important to have a policy on your property.