2022 Best Cheap Homeowners Insurance in Maine| The Motley Fool

Homeowners insurance in Maine is pretty affordable for many people, but it still pays to shop around. Those who want the lowest rates should focus their search on the best Maine home insurance providers. Here’s a look at which companies offer the most affordable rates for several common scenarios.

• Cheapest overall for Maine: Vermont Mutual Insurance Group
• Cheapest for new construction: Farmers
• Cheapest for older homes: Vermont Mutual Insurance Group
• Cheapest for homeowners who have filed a claim: Vermont Mutual Insurance Group

The typical Maine homeowner pays about $955 per year for home insurance, but those who choose Vermont Mutual Insurance Group can get the same coverage for less than half the cost. Its average annual premium is just $433 per year.

The following companies also offer cheap homeowners insurance in Maine:

• Farmers, where homeowners pay about $548 per year for Maine home insurance
• Union Mutual Insurance, which charges Maine homeowners about $685 per year

Farmers offers the most affordable rate for new Maine homes. Its average annual premium is just $242, while the state average for these homes is $584 per year.

These companies also offer some of the best homeowners insurance in Maine for new construction:

• Vermont Mutual Insurance Group, where new homes cost about $300 annually to insure
• Union Mutual Insurance, which charges about $349 per year for Maine home insurance on new homes

Vermont Mutual Insurance Group also proves to be the most affordable for older homes. It insures a typical 50-year-old home for about $400 per year. The state average for these homes is more than double this at $954 per year.

These insurers are also some of the best homeowners insurance companies in Maine for older homes:

• Farmers, where older Maine homes cost about $466 per year to insure
• Concord General Mutual Insurance, part of the Auto-Owners group, which charges about $607 per year

Maine homeowners who have previously filed claims have the highest average annual premiums at $1,068. But those who choose Vermont Mutual Insurance can get the same coverage for just $437 per year.

These insurers also offer great deals on Maine home insurance for those with a claims history:

• Farmers, which charges these homeowners about $626 per year
• Union Mutual Insurance, where homeowners who have filed a single claim pay about $653 per year for Maine home insurance

Maine home insurance rates fall well below the national average in every category. Owners of older homes in particular pay very affordable rates. Here’s a closer look at how Maine’s average annual premiums for the groups listed above compare to the national average.

Here are a few things Maine homeowners may want to know when shopping for homeowners insurance.

Maine’s average home price is a little above average

The average home price in Maine is $306,018, according to The Ascent’s research on average home price by state. That’s a little above the national average of $293,349. Home price alone can’t predict how much a house will cost to insure, but generally speaking, a more expensive home will cost more to rebuild. That means homeowners need to purchase additional coverage, and that costs more money.

Homeowners with more affordable homes might find rates that are even lower than the averages listed above, while those with more expensive homes might find they pay a little more for coverage.

Somerset County residents can expect to pay a little more than average

Three of the five cities with the highest average Maine home insurance premiums (found in the table below) are located in Somerset County. But living here doesn’t guarantee above-average rates.

Plenty of factors influence the cost of a home insurance premium, including the homeowner’s claims history, the size and construction of the home, and the amount of coverage the homeowner wants. But residents of Somerset County may have to do a little more research to find a great rate.

Here’s a look at some of the most common homeowners insurance claims in Maine.

Winter storm damage

Maine receives a lot of snow each year, and that can build up on roofs leading to eventual collapse. Cold temperatures can also cause problems, including freezing pipes. Homeowners can take steps to mitigate these damages, like wrapping pipes and shoveling roofs. But purchasing adequate home insurance is also important.

Wind damage

Tornadoes are pretty rare in Maine, but even thunderstorms can bring strong winds. These can knock trees down on homes and damage personal property left outside.

Wind damages can be so costly that many home insurers have begun instituting a separate wind/hail deductible for these claims. Homeowners must meet this higher deductible before their insurance company will pay for the remainder of the damages.

Flood damage

Floods happen in every state, including Maine. They’re more common in coastal and low-lying areas, and unfortunately, they’re not covered by a traditional homeowners insurance policy. Homeowners who live in areas at high risk of flooding may want to consider investing in a separate flood insurance policy so they don’t have to pay for these damages out of pocket.

Here’s a look at how some common home insurance discounts affect the average annual premium in Maine.

A new roof shaves over $150 off the average annual premium

Maine homeowners who install a new roof see their average annual home insurance premium drop to around $800. This makes sense because a new roof is better at keeping out snow and rain.

It’s a costly move up front, but it pays off in the long run. Homeowners who do get a new roof should notify their insurer right away so they can take advantage of the discount. And they may want to explore a few other options to see if another company is willing to offer them a better deal.

Paying in full is best when you can

Paying for a Maine home insurance premium in full knocks the average price down by about $100. It’s not always easy to do, but once homeowners know how much they can expect to pay, they can start budgeting for it. Setting aside a little money every month can help them claim this discount during the next policy period.

Bundling is still the best way to save

Maine homeowners who also plan to insure a vehicle may want to choose a single company to work with. Bundling home and auto insurance drops the average Maine home insurance premium to $682 per year. No other single discount lowers rates this much.

The following five cities have the most affordable average Maine home insurance premiums:

Residents of these five cities pay more than the state average for their Maine homeowners insurance. However, their rates are still well under the national average.