September 9, 2025
Maine homeowners enjoy the most stable insurance market in the U.S., with low premiums and strong protections despite winter risks and coastal exposures.
Maine's home insurance market stands as a beacon of stability in an otherwise tumultuous national landscape. While rates spike nationwide, Maine has been the least impacted by climate change-fueled insurance rate increases nationwide, earning it the highest score on an Insurify index that measures climate change stability — a perfect 100. In fact, Maine saw home insurance rates decrease between 2023 and 2024 while the rest of the country experienced significant increases.
The average cost of homeowners insurance in Maine in 2024 is $1,267, which is $1,156 less than the national average of $2,423. This affordability, combined with relative market stability, makes Maine an attractive state for homeowners despite some unique regional challenges.
Maine's harsh winters present specific challenges that homeowners must address through proper insurance coverage. Heavy snowfall, ice dams, and freezing temperatures can cause significant property damage. Maine's cold winters come with the possibility of damage to your home from ice, snow, and sleet, making comprehensive winter protection essential.
Commonly Recommended Coverage Options:
Wood-burning stoves are an added risk which increase the probability of a fire loss. In rural Maine homes, these heating sources are common but require careful consideration from an insurance perspective. Most insurance companies only cover wood stoves if they meet specific requirements: be installed by a professional, pass an inspection, and not be your home's main source of heat.
Insurance companies may require professional installation certificates and annual safety inspections. Some insurers apply surcharges for wood-burning appliances, while others may limit coverage or require additional documentation. Always disclose wood stoves and fireplaces to your insurer during the application process to avoid claim denials.
Southern coastal areas of Maine face windstorm and hurricane risks that can significantly impact insurance coverage. Some carriers apply separate wind/hurricane deductibles or limit coverage near coastal zones. Homeowners policies in Maine may have a separate hurricane deductible, based on a percentage of your home's insured value.
Maine's weather can be particularly harsh on roofing materials. Older roofs (15-20+ years) may result in Actual Cash Value (ACV) settlement rather than replacement cost coverage unless recently updated. Regular roof maintenance and timely replacements can help maintain full replacement cost coverage.
Maine's appeal as a vacation destination means many properties serve as seasonal or secondary homes. These properties require specialized coverage approaches, as limited occupancy can affect both coverage availability and pricing structures.
Maine's extensive rural areas and wildlife population create unique risks. Property owners should consider animal damage coverage where available, which may provide protection against damage from raccoons, bears, rodents, and other wildlife common to the region.
Maine provides robust consumer protections through specific timing requirements:
This legislation provides additional consumer protections regarding non-renewals and establishes clear guidelines for valid cancellation reasons. If an insurer decides not to renew your policy, they must send you a "legal notice of non-renewal." As a policyholder, you have the right to challenge non-renewal by appealing to the Maine Bureau of Insurance.
While Maine has shown remarkable stability, the market isn't immune to pressures affecting the national insurance landscape. Maine home insurance rate increases continue to outpace even large auto insurance increases. The average home insurance premium was 17.7% higher than a year ago in some areas, though this varies significantly by location and risk profile.
The smallest increases are expected in Maine (up 3 percent to an estimated $1,688) for 2025, making it one of the most stable markets nationally.
When you look at Maine and see average insurance premiums going up 19 percent, that is slightly misleading, as increases are not distributed evenly across the state. Coastal properties face higher rate pressures due to storm exposure, while inland rural properties may see more moderate increases.
Given the complexity of Maine's insurance market and the specific coverage needs created by the state's unique risks, many homeowners find value in working with insurance professionals who understand these local factors. Covered provides specialized insurance partnership services that help reduce call center operational expenses while improving the customer experience. By connecting homeowners with the right coverage options and helping them understand complex policy terms, Covered aims to help Maine residents feel adequately supported by their servicer, helping them secure appropriate protection while managing rising costs and reducing exposure to uncovered risks.
Understanding how Maine's rates compare to neighboring states provides valuable context for the market's competitiveness:
Vermont: $950 a year, Maine: $1,180 a year shows the regional variation, with New Hampshire residents paying far less than the national average for homeowners insurance at similar rates to Maine.
Gardner acknowledged that insurance companies might take more than a year after a natural disaster strikes to file for rate increases, meaning Maine's home insurance stability might not be guaranteed a year from now. The recent flooding events and winter storms may impact future rate filings.
Maine's geographic advantages continue to provide protection from the most expensive climate-related disasters. Maine's geography protects it from excessive natural disasters, including tropical cyclones, which are generally the most expensive types of disasters. This fundamental protection should help maintain Maine's position as one of the nation's most stable insurance markets.
Maine's home insurance market represents a success story in an industry facing unprecedented challenges. The combination of geographic advantages, reasonable rates, and strong consumer protections creates an environment where homeowners can secure necessary coverage without the extreme rate volatility seen elsewhere. However, Maine's unique risks—from harsh winters to wildlife exposure—require thoughtful coverage selection and proper risk management.
Homeowners should work with knowledgeable insurance professionals who understand these local factors, maintain their properties proactively, and stay informed about changing market conditions. By addressing Maine-specific risks while taking advantage of the state's overall market stability, property owners can achieve comprehensive protection at reasonable costs.
The key to success in Maine's insurance market lies in understanding and preparing for the state's unique challenges while leveraging its natural advantages. With proper planning and coverage selection, Maine homeowners can enjoy both the Pine Tree State's natural beauty and the peace of mind that comes with appropriate insurance protection.
This article provides general information about Maine’s homeowners insurance market based on available industry data as of 2025. Individual circumstances vary significantly, and premium quotes, coverage options, and policy terms differ by insurance company. Consumers should consult with licensed insurance professionals for specific coverage recommendations and current pricing. Information presented should not be considered as guaranteed outcomes or personalized insurance advice.
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*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
