When outsiders think of Maine, they may picture the dramatic 3,500 miles of coastline. Maybe they imagine a moose or two. They may even have a really distorted view of the Pine Tree State courtesy of Stephen King. But they probably don't know that Maine produces, by some estimates, 90% of the country's toothpicks. It's true: 20 million toothpicks come out of the Strong Wood Products Incorporated plant every day. And if you forego home insurance, you may just discover that your home's defenses are about as strong as those toothpicks, only in much smaller numbers.
The Types of Policies
Maine insurance is something to embrace, not an idea to toss aside into Old Sow. With knowledge, you can purchase great coverage at an affordable price. To understand the value of your Maine home insurance quotes, first familiarize yourself with the types of policies available:
- HO-1: Although this is the least expensive, few companies offer this policy because of its limited nature; protects you against common perils such as fire, lightning, wind, hail, and theft; covers medical payments, and other limited expenses.
- HO-2: HO-1 coverage, plus protects against falling objects, the weight of ice or snow, plumbing system damage, and electrical damage to appliances.
- HO-3: Most Maine residents buy this type of policy, which covers all physical losses except for those specifically excluded in the policy (such as floods, earthquakes, and war).
- HO-4: This renters' policy covers tenant's possessions, and personal liability for physical damage suffered while in the unit.
- HO-5: HO-3 coverage, plus coverage for personal possessions against loss, except for specific exclusions listed in the policy.
- HO-6: Essentially HO-4 coverage for condominiums
- HO-8: Similar to HO-1 coverage, but provides an actual cash payment instead of replacement cost coverage; designed for older homes, in which the property exceeds the market value.
How Much Coverage?
The price per square foot for a home in Portland averages $116. This means that a 2,500 square foot home will usually need at least $290,000 in dwelling coverage-a good way to begin weighing Maine home insurance quotes. Keep in mind that your possessions will typically be covered at 50% of the dwelling amount. You may want to take the time to add their value and decide if you need more than, say, a $145,000 policy to replace them. Also, the price per square foot refers to a "standard" home. If you decide to make significant upgrades-defined as "above-standard materials" such as granite countertops, stainless steel appliances, etc-then your dwelling value will rise significantly. In that case, you should compare Maine home insurance quotes to find more coverage at a price you can afford.
Low Prices Through Safety
A wealthy resident might just pay for the first Maine home insurance quotes he finds, but you shouldn't acquiesce so quickly. You can easily lower your premium by making your home safer from fire damage and theft. Consider the average annual premium for home insurance in Maine: $566. If you secure your doors with deadbolt locks, and install a burglar alarm, you can lower that cost to $510. To shave another 15% from your annual cost, equip your home with fire extinguishers and smoke alarms. Once insurers believe you've decreased the chance of damages, they'll respond with lower rates.
A Final Note
According to the Maine Bureau of Insurance, "During the first 90 days of a new policy, an insurer may decide to cancel a policy for any reason that is not otherwise prohibited by Maine law. For example, the law prohibits refusal of insurance solely on the basis of the applicant's age (age 65 or older), credit information, losses under a home's prior owner, or the age of the dwelling." Just in case, it's best to know how to find a great home insurance quote when you need one. Besides, rates change all the time; if you search, you may find a better deal. To save time, a free service like NetQuote.com will compare all the rates for you. And you'll reap the rewards.