Last Updated on September 29, 2020 by Andrew Lee
Of all the investments you have or will ever make, the purchase of the home is arguably the biggest and the costliest. And because you can only call a house a home when it provides a safe, secure, and comfortable haven for you and your loved ones, you also need to spend money on quality structural components, building materials, electronic systems, fixtures, and furnishings among many others.
As you can already see, your house and its contents definitely make it to the top of the list of your priciest purchases. So it only makes sense you take good care of it. One of the best ways to do this is to purchase sufficient Maine homeowners insurance coverage.
Average premiums for homeowners and renters insurance in Maine
In a recent report issued by the National Association of Insurance Commissioners (NAIC), it found out that the annual national average of homeowners insurance premiums is at $1,096.
Homeowners paid an average of $776 making Maine the 42nd state with the highest insurance premiums
Renters, on the other hand, had a median expenditure of $147 making the state the 43rd place in the same ranking
The financial resource company ValuePenguin provides additional information, and according to its researchers, the monthly Maine homeowners insurance premiums average amounts to $61.29.
How a typical policy in Maine looks like
As the United Policyholders defines it, you can expect a typical homeowners insurance policy for Maine residents to consist of four major coverage types. These include coverage for the following: Dwelling or Structure, Other Structures, Contents, and Additional Living Expenses.
The primary function of this type of insurance is to provide protection for homeowners against potential out of pocket expenses in the event a disaster occurs and causes property damage/loss, as well as legal liabilities. Protection for the latter takes effect when someone gets injured or their property gets damaged due to your negligence.
Key Facts and Market Trends in Maine: The NAIC also published an analysis of the number of insurance companies per state. Maine has a total of 18 domestic insurers and 1,120 licensed foreign insurers, bringing the total count to 1,138.
Replacement cost coverage limits you should invest in for your home
According to the Bureau of Insurance sector of Maine’s Department of Professional & Financial Regulation, you should obtain, at the very least, 80% of your home’s replacement cost with your insurance policy. However, you can purchase a higher replacement cost value, or RVC – 90% to 100%.
RCV pertains to the amount of money required to rebuild a damaged or lost structure after you completely lose it due to any event your policy covers. This is why you should take the time to first determine your home’s total replacement cost. This way, as the Bureau of Insurance advises, you can avoid not only high out of pocket expenses, but also insurance-to-value penalties.
The risk of denial of claim settlements
Note that insurance companies can choose to deny making settlements with their policy holders, under certain circumstances. To prevent this from happening, make sure you cooperate completely with your insurer upon filing a claim. Agree with your insurance provider in the event they ask you to an under oath examination or recorded statement participation.
Because you can’t predict when a property damage- or loss-causing incident may occur, it pays to be proactive. With a proper Maine homeowners insurance form, you can avoid costly expenditures using your own money when disaster strikes and hits your home hard. To learn more about home insurance, read this.