FACT SHEET: Maine’s Home Insurance Crisis
Last Updated: 10/6/26
Climate change is pushing property insurance companies to raise rates and cancel policies in Maine. Between 2020 and 2025, home insurance rates in the Pine Tree State increased by 20%, and the nonrenewal rate increased by 69% between 2020 and 2023. The growing risk of storms in the state is a major driver of Maine’s home insurance crisis. Trump’s cuts to emergency preparedness and response, alongside his far-reaching tariffs, will make Maine’s home insurance crisis even worse.
MAINE’S HOME INSURANCE RATES HAVE SOARED IN RECENT YEARS, AND COSTS CONTINUE TO GROW
- Between 2020 and 2025, home insurance rates in Maine increased by 20%, and in 2025, they increased by 2.3%.
- From 2023 to 2024, Maine homeowners saw average home insurance increases of 23%, driven by extreme weather disasters in the state.
INSURERS ARE REFUSING TO RENEW HOMEOWNERS’ POLICIES IN MAINE
- From 2020 to 2023, Maine’s home insurance nonrenewal rate increased by 69%.
- From 2020 to 2023, the number of nonrenewals in Maine almost doubled from 796 to 1,411.
- A 2026 report found that 13.2% of Maine homes were uninsured, 59,593 total.
- Maine does not have a state-backed insurer of last resort to provide homeowners access to coverage when traditional insurers decline, leaving those who lose coverage to buy riskier surplus insurance or go uninsured.
CLIMATE CHANGE AND EXTREME WEATHER ARE DRIVING MAINE’S INSURANCE CRISIS
- Flooding damage to infrastructure and property was Maine’s largest financial risk, according to the state’s 2020 Climate Action Plan.
- As of 2023, 26,000 Maine properties outside the federally designated flood zone were estimated to be at risk of flooding.
- In 2023, the expected payout for property damage due to severe weather claims in Maine was nearly eight times that of an average year.
- Obtaining property insurance coverage in Maine has become increasingly difficult because of flood risk, even in areas outside flood zones.
- Maine is the nation’s most forested state, and between 2019 and 2024, the number of wildfires rose nearly 84%, from 355 to 653.
- More than 72% of buildings in Maine were directly exposed to wildfires.
TRUMP WILL MAKE MAINE’S INSURANCE CRISIS EVEN WORSE
- Trump’s tariffs were expected to increase home insurance costs in Maine by $51.
- Tariffs were expected to make rebuilding after disaster more expensive. The National Association of Home Builders estimates a cost increase of $10,900 per home due to tariffs on construction materials.
- Trump’s attempts to gut FEMA programs, undermine NOAA research and forecasting, and cut disaster relief at the Department of Housing and Urban Development would all contribute to higher home insurance costs.
- FEMA also administers the National Flood Insurance Program (NFIP), which provides coverage for more than 4.7 million homeowners, including many who otherwise could not obtain coverage.
- As of August 2026, NFIP policies covered 8,106 properties in Maine.