Maine Homeowners Insurance Guide

Maine residents are fortunate in that their homes face a relatively minimal threat from natural disasters and other weather-related damage. For this reason, Maine has some of the most affordable homeowners insurance premiums in the country. In fact, in 2006, Maine ranked as the 44th cheapest state in the U.S. for homeowners insurance, with average annual premiums of $573. Although Maine home insurance coverage is affordable, that doesn’t mean it’s unnecessary. Insuring your Maine home is essential to your financial stability. Read on for more information on how and why you should purchase Maine homeowners insurance.

Reasons to Purchase Home Insurance

Even though Maine is not a disaster-prone state, Maine homes still face a number of dangers that warrant the purchase of a homeowners insurance policy. We’ve outlined a few of the most compelling reasons to purchase Maine home insurance below.

1. Weather damage. Maine is prone to heavy winter snow storms, which can easily damage houses with the weight of the sleet, ice, or snow they bring. Likewise, certain coastal homes in Maine may suffer wind-related damage from occasional hurricanes. Homeowners insurance will protect you against these perils.
2. Traditional perils. Events like fires, burglaries, vandalism, and water damage happen every day in homes in every state, and Maine is no exception. All of these everyday perils are covered by homeowners insurance.
3. Lender requirements. If you’re about to purchase a home in Maine, your lender will most likely require that you purchase homeowners insurance before you can close on your mortgage. Lenders require home insurance from borrowers in order to protect their investment.
4. Liability. Every Maine home insurance policy will come with liability protection. The liability portion of a home insurance policy protects homeowners in the event that they cause damage to another’s property or physically injure someone. Liability protection is essential to protect your assets from lawsuits.

Supplementing Your Policy

A standard homeowners insurance policy provides a great deal of protection, but some policyholders may want to supplement their coverage for added protection. Here are some extra coverages Maine homeowners might consider:

• Flood insurance. Because of Maine’s proximity to the ocean and the occasional hurricanes that pass through, homeowners would be well-advised to purchase flood insurance as well as home insurance. Standard home insurance will not cover flood-related damage to a home; homeowners must purchase separate coverage.
• Personal property riders. If you have items in your home that have exceptionally high values, you will need to purchase a personal property rider or floater to insure the items fully. Most Maine homeowners insurance policies only cover individual items up to a certain dollar amount (e.g., $1,000). If an item’s value exceeds this amount, the homeowner is responsible for the amount of the loss in excess of the maximum unless he/she has added a rider to the policy.
• Umbrella liability coverage. In many cases, it may be cheaper for homeowners to choose minimal liability coverage on their home insurance policies and supplement the coverage with an umbrella policy. An umbrella policy provides additional liability protection for home and auto insurance coverage. Usually, you can purchase a very large umbrella policy for a very affordable annual premium.