By Jon Merwin, Founder and CEO, Licensed Insurance Advisor. Updated October 31, 2026.
Looking for high-value home insurance in Cape Elizabeth, Maine? Portsmouth Atlantic Insurance is an independent, Maine-licensed agency in Portsmouth, NH, and we compare 40+ carriers for oceanfront homes on Shore Road and Two Lights, older capes and farmhouses near the Town Center, and newer houses near Crescent Beach and the Spurwink Marsh. Cape Elizabeth is mostly a year-round town, not a summer colony, and its rocky coast protects much of it. The houses that need the most care are the ones on low ground near the marshes and coves, and the older homes whose rebuild cost runs well past their sale value.
Key facts
- Most of the town’s coastline is stable rock, but the 2015 study names Sawyer Road, Shore Road, Spurwink Avenue and Starboard Drive as the most exposed public roads (Cape Elizabeth Sea Level Rise Vulnerability Assessment).
- In the January 10 and 13, 2024 storms, Shore, Kettle Cove and Sawyer roads were eroded or flooded and Portland Head Light was damaged (Portland Press Herald); Crescent Beach State Park lost about 15 feet of dunes (Maine Public).
- New and substantially damaged homes in AE and AO flood zones must have the bottom floor at least two feet above base flood elevation (Cape Elizabeth Construction Code, Chapter 6).
- About 88% of occupied homes are owner-occupied, and the median owner-reported home value is about $731,600 (ACS 2020–2024, via Census Reporter).
- The town’s Climate Action Plan, adopted September 8, 2025, says climate hazards could affect more than 100 buildings and properties and that 56% of homes were built before 1970 (Cape Elizabeth Climate Action Plan).
Where Cape Elizabeth’s larger homes are
Cape Elizabeth packs a lot of shoreline into a small town between South Portland and Scarborough. For underwriting, the first questions change from one part of town to the next.
Shore Road and Portland Head
Large homes on ledge above the water from Fort Williams Park south toward Pond Cove, with wind and spray more of a concern than rising water on most lots.
Two Lights and Kettle Cove
Oceanfront and ocean-view houses near Two Lights and Kettle Cove, where Kettle Cove Road washed out in January 2024.
Spurwink Marsh and Crescent Beach
Homes along Spurwink Avenue, Starboard Drive and Sawyer Road that border the marsh, plus houses behind the Crescent Beach dunes.
Town Center and inland Cape
Older capes, farmhouses and newer custom homes on larger lots, many built before 1970 and some on private roads.
Ledge, marsh and the January 2024 storms
The town’s 2015 sea level rise study opens with a reassuring point: according to the Maine Geological Survey, most of Cape Elizabeth’s coastline is stable, with little risk of erosion or landslide. The weak spots are the low places. Sawyer Road crosses the Spurwink Marsh at a level the study describes as perhaps a foot or less above high tide in places. Starboard Drive has fairly dense homes close to the marsh, with the road flooding at a high tide plus two feet of surge and the houses themselves exposed at three feet. Homes at the end of Alewife Cove Road and along Shore Road near Pond Cove were also flagged.
The January 2024 storms tested those spots. The town manager told the Portland Press Herald that Shore, Kettle Cove and Sawyer roads were eroded and in places impassable, and a car was swept off Sawyer Road into the marsh. The state’s marine geologist told Maine Public that dunes along the coast lost 15 to 30 feet, about 15 feet at Crescent Beach. FEMA later declared the January 9 to 13 storms a major disaster for Cumberland County and seven other counties (FEMA DR-4764).
Wind on the ledge, water in the marsh
A Shore Road house set high on rock may never see flood water but will take every nor’easter head on. Wind damage to the roof, windows and siding is part of a homeowners policy, though coastal Maine policies may carry a separate windstorm or hurricane deductible set as a percentage of the dwelling limit. We show that deductible in dollars for each carrier, because 2% of a $3 million house is $60,000. A house next to the marsh is the opposite case: modest wind exposure, real flood exposure. Look up your address on the FEMA Map Service Center or use our flood zone check.
Flood coverage and the two-foot rule
Cape Elizabeth requires more than the federal minimum. Its construction code says the bottom floor of a new home in an AE or AO zone, basement included, must sit at least two feet above the base flood elevation, and the same goes for an existing home that is substantially improved or substantially damaged. Substantial damage means repairs that equal or exceed 50% of the building’s market value before the loss. For an older house near the marsh, a bad flood can cross that line, and the rebuild then has to be raised.
Federal flood insurance through the NFIP stops at $250,000 for the building and $100,000 for contents, and most new policies wait 30 days to start (FloodSmart). It does include a small amount for code-required work after a substantial-damage finding, but on a larger home that rarely closes the gap. We write federal flood through Selective, then add private flood from Neptune, Beyond Floods, Flow Flood or Aon Edge above it, or use a private policy alone when it fits better. An elevation certificate makes all of this faster. More on our Maine flood insurance page.
Historic homes and rebuild rules
Cape Elizabeth does not use local historic districts the way York or Kennebunkport do. Instead, section 19-8-6 of the zoning ordinance lists specific historic buildings in an appendix and requires a 45-day notice to the town and the Maine Historic Preservation Commission, published in a local paper, before one is torn down. The ordinance exempts the remains of a building destroyed by fire or a natural disaster, so a total loss does not start that clock.
Two other rules can slow a rebuild. The same section treats land within 250 feet of Alewife Brook, Great Pond, the Spurwink River below the Route 77 bridge, the upland edge of the Spurwink Marsh and the high water line at Hannaford Cove as archaeological potential areas, where ground work can wait on a survey or a letter from the state. And homes near the water fall under the town’s shoreland overlay, which limits how far a nonconforming house can be rebuilt or enlarged near the shore.
For insurance, that points to three things. Set the dwelling limit from a real reconstruction estimate for the house you have, with its plaster, trim and ledge foundation, not from the sale value. Carry enough ordinance or law coverage for raising the house, new code work and parts that must come down. And plan for a long rebuild with ample additional living expense. Our historic home insurance guide and replacement cost estimator can help.
Year-round homes, outages and rentals
Census figures put about 88% of Cape Elizabeth’s occupied homes in owner hands, and only about 210 homes are held for seasonal use. Most of our Cape Elizabeth clients live in the house year-round, so the big questions are less about winter checks and more about power. The town’s Climate Action Plan names longer power outages from extreme storms as a key risk and encourages residents to keep a backup system. A standby generator, a low-temperature alert and an automatic water shutoff all belong on the application.
Short-term rentals are tightly limited. Under section 19-8-14 of the zoning ordinance, a primary home rented while the owner is away is capped at 42 days a year, a property of seven acres or more at 182 days, and only one rental type is allowed per lot each year. If you plan to rent even for a few weeks, tell us first, since some carriers treat any rental differently. If the Cape house is a second home, see our Maine second home guide.
Hydrants, private roads and fire protection
The Cape Elizabeth Fire-Rescue department notes that the Portland Water District owns every hydrant on the town’s public streets, and that firefighters dig out more than 330 of them after a big snowfall. A hydrant buried under a plow bank does not help, so clearing the one near your house is worth the effort. Homes on long private drives or private roads, common near the shore and on larger inland lots, may sit farther from a hydrant, and carriers will ask about that distance and the distance to the station in the Town Center.
Central-station fire and burglary alarms, water-leak sensors and a monitored low-temperature alarm help with nearly every carrier. Tell us about any sprinkler system, a wood stove or an older chimney too.
Carriers we compare for Cape Elizabeth homes
A 1950s cape near the Town Center or a renovated farmhouse often fits Hanover, which writes Maine homes up to $2 million, or Patriot, up to $3 million. A newer custom home near Crescent Beach or a large house on Shore Road may suit National General or Openly, which each reach roughly $5 million in Maine. For the largest oceanfront homes, or when fine art, jewelry or a wine collection should be scheduled, Chubb and Cincinnati are usually where we start. Hagerty covers the collector car in the garage. Marsh-side flood exposure, a private road or a rental permit can move a house from one carrier to another, so we match the house to the carrier.
Most owners at these values also want an umbrella policy. A boat on a mooring needs its own Maine boat policy, and a classic car belongs on a Maine collector car policy.
What to have ready for a Cape Elizabeth quote
- The address, year built, square footage and any major renovations.
- Whether the house is on the town’s historic resources list.
- An elevation certificate if you have one, especially near Spurwink Marsh, Starboard Drive, Alewife Cove, Pond Cove or Crescent Beach.
- The distance to the nearest hydrant, and whether the house is on a private road.
- The roof material and age, heating system, chimneys and any wood stove.
- Alarms, water and temperature sensors, a generator, and any sprinkler system.
- How the house is used (year-round, second home or short-term rental) and any rental permit.
- Your current declarations page and any scheduled jewelry, art or collections.
Related Maine pages: Kennebunkport high-value homes, Mount Desert Island high-value homes, York, Maine and Kittery, Maine. See every town on our Maine high-value home hub.
Request a Cape Elizabeth home quote
Tell us about the house, where it sits and how you use it, and we will compare the carriers that fit a Cape Elizabeth home. About 90% of our quotes go out within 24 hours, and we don’t charge additional fees.
Frequently asked questions
Cape Elizabeth has a rocky coast. Do I still need flood insurance?
Often, yes. The town’s 2015 sea level rise study says most of the shoreline is stable ledge, which is good news for many oceanfront lots. But the same study flags the low ground around Spurwink Marsh, Starboard Drive, Alewife Cove and Pond Cove, and the January 2024 storms flooded Shore Road, Kettle Cove Road and Sawyer Road. A homeowners policy excludes flood, so we look at the map, the first-floor height and the basement before we decide.
If my house burns, does the 45-day historic demolition notice apply?
Usually not to the ruins. Cape Elizabeth’s ordinance requires a 45-day notice before a building on its historic resources list is demolished, but it exempts the remains of a building destroyed by fire or a natural disaster. The rebuild still has to meet current zoning, shoreland and flood rules, so ordinance or law coverage and additional living expense still matter.
How high does a rebuilt house in a flood zone have to be?
Under the town’s construction code, new homes and substantially improved or substantially damaged homes in AE and AO zones need the bottom floor, including any basement, at least two feet above the base flood elevation. Substantial damage means repairs costing 50% or more of the building’s market value. That can turn a flood claim into a full raise-and-rebuild, which is why we pay close attention to ordinance or law limits on low-lying lots.
Can I rent my Cape Elizabeth house while I travel?
Only within the town’s short-term rental rules. A primary home can be rented unhosted for no more than 42 days a year, and other types have their own limits and permits. Any rental changes what a carrier needs to know, so tell us before the first guest arrives and we will confirm the policy fits how the house is used.
Does Cape Elizabeth have hydrants everywhere?
The Portland Water District owns the hydrants on the town’s public streets, and the fire department clears more than 330 of them after big snowfalls. Homes on long private drives or private roads can be farther from a hydrant, so we confirm the nearest one and the distance to the fire station before we submit.
Which carriers write high-value homes in Cape Elizabeth?
For Maine homes, Hanover can go to $2 million and Patriot to $3 million, and National General and Openly can reach roughly $5 million. For larger oceanfront homes, or when art, jewelry or wine should be scheduled, we usually start with Chubb or Cincinnati, and Hagerty covers collector cars. Each carrier makes its own decision on the house.
Sources
- Town of Cape Elizabeth, Sea Level Rise Vulnerability Assessment, June 2015
- Town of Cape Elizabeth, Climate Action Plan, adopted September 8, 2025
- Town of Cape Elizabeth, Climate Action Plan page
- Town of Cape Elizabeth Zoning Ordinance, sections 19-8-6 and 19-8-14
- Town of Cape Elizabeth Construction Code, Chapter 6, effective June 12, 2024
- Portland Press Herald, Storm damage assessments ongoing, January 18, 2024
- Maine Public, Maine coastal dunes experienced 15-30 feet of erosion during January storms, March 8, 2024
- FEMA, Maine Severe Storms and Flooding (DR-4764-ME)
- Cape Elizabeth Fire-Rescue, Frequently Asked Questions
- Census Reporter, Cape Elizabeth town profile (ACS 2020–2024)
- FloodSmart (NFIP), Buy a policy
About Portsmouth Atlantic Insurance
Portsmouth Atlantic Insurance is a family-owned independent agency founded in Portsmouth in 2005 and licensed in 10 states. We compare 40+ carriers, hold an A+ rating with the Better Business Bureau, and are New Hampshire’s highest-rated agency on Google, with 1,000+ Google reviews and over 2,000 testimonials (see our client feedback). Our team brings 200+ years of combined experience. We don’t charge additional fees.
We serve Cape Elizabeth homeowners from our Portsmouth, NH office and by phone at (603) 431-4020, email at insure@portsmouthatlanticins.com, online and by video.
About the author
Jon Merwin is the Founder and CEO of Portsmouth Atlantic Insurance and a Licensed Insurance Advisor. He started the agency in Portsmouth in 2005 and works with owners of larger and older homes on Cape Elizabeth and the Maine coast. Read his full bio or see how we choose carriers.