Climate change, rising home costs converge to drive up insurance rates in Maine

MAINE MONITOR • July 5, 2024

Sea level rise, intensifying coastal storms and rising construction costs converged to drive up annual Maine home insurance rates by an average of 15 percent this year, a recent report found. That number is expected to balloon to 19 percent by the end of the year, the second highest increase in the country, behind Louisiana. Under this scenario, Maine would see average annual rates go from $1,322 to $1,571. And although Maine’s average rate is still one of the lowest in the country (the national average was $2,377 in 2023, according to Insurify), such a rapid rise demonstrates the vulnerability of Maine’s historically low rates to both the natural disasters occurring locally and the global and national trends hiking up insurance rates.