Maine FAIR Plan Alternative?

Maine is divided into three climatological divisions- northern interior, southern interior, and coastal. Since the coastal division is tempered by the ocean, the area experiences milder weather than the northern and southern divisions leading to less homeowners insurance claims than other areas. Although winter in Maine can be very cold, the season for snowfall is somewhat shorter it records lower amounts of snowfall than other northern states. Rainfall is fairly even throughout the year, but flooding may occur in late winter and early spring when snow begins to melt leading to thousands of homeowners insurance claims per year. Despite this varience of risks speard throughout Maine the state has yet to implement a FAIR Plan for high risk homeowners insurance.

Historically, Maine experienced an earthquake with a magnitude greater than 5.0 in 1924 and in 1973 but has been quiet in the remaining years with only seven earthquakes recorded at 3.5 and above but each has a high potantial for damage. The state as a whole, has experienced only 19 tornado events with a magnitude of 2 or above which is lower risk than most. Maine has recorded 3,954 historical extreme weather events since 1950 causing millions of homeowners claims which includes some of the following:

Thunderstorm Winds -1,455
Floods – 589
Hailstorms – 753
Winter Storms – 153
Heavy Snow – 242
Windstorms – 259

Property owners in Maine are benefitting from mild weather and minimal catastrophic events which translates into favorable property insurance rates and stiff competition among the state’s insurers. If enough claim events occur that insurance companies deem high risk, there may become a need if there are enough cancellations, non-renewals, price increases or people in lender placed policies Maine may look at starting a FAIR Plan. As with all FAIR Plans, consumers are urged to try to find coverage in the private market and we can help you find an agent that can help you find alternatives to the FAIR Plan.