Best Condo Insurance in Maryland
- Best Condo Insurance in Maryland
Condos in Maryland can make enjoying life in the Chesapeake area easy with lower purchase prices, maintenance costs, and potentially nicer amenities than a home. An interesting aspect of condo living is the insurance stipulations.
You must balance covering yourself with the limitations of your condo association’s insurance policy. We’ll explain all you need to know and how you can save money when looking for personal condo insurance.
The guide below will help you find the best condo insurance in Maryland.
How Much Is Condo Insurance in Maryland?
The average cost of condo insurance in Maryland is $323 per year or $27 monthly. Average rates in Maryland at common coverage levels range between $23 to $38 per month.
The exact cost you’ll pay for condo insurance in Maryland will vary, as it does in any location, based on several factors about yourself and your building. Insurance companies consider many different factors before determining a premium, which is why costs will vary from company to company.
On the whole, here are the average condo insurance rates at different coverage amounts in Maryland.
Average Cost of Condo Insurance in Maryland
$20,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 and over
Avg. Annual Rate
Avg. Monthly Rate
Generally, the higher your limits, the more you’ll pay for coverage. This is because the insurance company is protecting more of your things at a higher valuation. Most people won’t need $100,000 of condo insurance coverage.
You’ll likely fall in one of the three lower categories, meaning most Maryland condo unit owners will pay between $23 and $33 monthly for a policy.
What Does Condo Insurance in Maryland Cover?
Condo insurance in Maryland (officially known as HO-6 insurance) covers your unit and belongings from various damage sources called perils. Theft, vandalism, fire damage, water damage, and wind damage are the perils condo owners encounter most often, although policies cover rarer occurrences like vehicle and ice damage also.
The ways your policy protects you from perils are separated into different sections in your plan. They look like this:
Personal Property Coverage
Personal property coverage financially protects your belongings like electronics, furniture, clothes, jewelry, tools, bicycles, and more. Your insurer will reimburse you if your items get damaged by a covered peril.
Loss of Use Coverage
Loss of use coverage helps pay for living costs if you get forced out of your unit after damage from a covered peril makes it unlivable. Your insurer can cover lodging, gas, groceries, and more while you’re displaced.
Liability coverage guards you if you’re found liable for injuring a guest or a visitor to your unit by accident. Liability coverage can cover medical payments, legal fees, and more. It can also cover property damage you unintentionally cause to someone else.
Medical Payments Coverage
Medical payments coverage also helps pay for injuries someone can suffer, although on a much smaller scale than liability coverage. Medical payments coverage is for minor injuries only.
Loss Assessment Coverage
Loss assessment coverage protects owners against their share of special assessments from the association for covered losses that exceed the master policy’s coverage limits.
Building Property (Dwelling) Coverage
Dwelling coverage in condo insurance provides protection for many physical structures in your unit, like fixtures, walls, floors, countertops, and more, from covered peril damage.
How to Get the Best Condo Insurance in Maryland
You must understand your coverage needs to get the best condo insurance in Maryland. This involves knowing how your association master policy works and potentially changing your default policy coverages and limits.
Understand Your Condo Association Master Policy
Every condo homeowners association (HOA) has an insurance policy that covers the building’s exteriors, complex common areas, and amenities. The coverage you should get in your personal condo plan can change depending on the type of master policy your HOA has.
Some complexes have walls-out or bare walls master plans, which means that the association insurance coverage stops at your unit’s doorstep. Nothing inside your unit is covered. Other times, your HOA will have walls-in coverage that protects surfaces and features in your unit, like the floor, cabinets, and countertops.
Dwelling coverage is optional in condo insurance, and you don’t necessarily need dwelling coverage if you have a walls-in master policy since your HOA covers many fixtures in your unit. But, if you have walls-out coverage, features in your condo are unprotected unless you get dwelling coverage.
Consider Loss Assessment Coverage
Loss assessment coverage is also optional in condo insurance. However, we recommend getting it in most cases, especially if your complex is near the Maryland coast and vulnerable to tropical storm and hurricane damage.
One of the least desirable things about condo living is the potential for unexpected assessments. Loss assessment coverage will help cover the costs of assessments resulting from damage exceeding your HOA’s master policy limits.
Check if your HOA’s insurance limits seem rather low. Major, unexpected property damage, such as a large-scale fire or Nor’easters, can catch unsuspecting condo boards without the appropriate coverage. Also, condos near the Atlantic coast could feel the wrath of destructive hurricane wind damage that can cause significant issues.
If you’re concerned about an assessment wreaking havoc on your community and finances, consider loss assessment coverage in your plan. It often costs less than $100 annually and could save you thousands if used.
Know Replacement Cost vs. Actual Cash Value Coverage
You should also be wary of how your policy covers your things. Condo insurance companies in Maryland cover your belongings one of two ways: with actual cash value or replacement cost coverage.
Actual cash value coverage means your insurer will deduct depreciation before reimbursing you for damaged items during a claim. Everything depreciates, so you’ll never receive back what you paid for an item in totality.
Replacement cost coverage, on the other hand, means your carrier will reimburse you what you paid for an item regardless of when you bought it. They give you enough to purchase a replacement equivalent to what you lost. Replacement cost coverage is more comprehensive, but it’s also the more costly option.
Tips on Getting the Cheapest Condo Insurance in Maryland
Some ways to lower your average condo insurance cost in Maryland include:
- Raising your deductible
- Adjusting coverage limits
- Asking about discounts
Raise Your Deductible
Your deductible is the dollar amount property damage must exceed before you can file a claim for your insurer to cover the damage. You choose your deductible when you get a policy, typically between $500 and $2,000.
Opting for a higher deductible means you’re choosing to cover more damage out of your pocket before invoking your insurance company’s help. Companies prefer this and will give you lower monthly premiums if you choose a higher deductible. Choose your deductible wisely – if you make it a number you can’t afford in an emergency, you won’t be able to repair your unit or file a claim.
Adjust Coverage Limits
You also choose your coverage limits when you get a plan. As we mentioned earlier, the higher you put your limits, the more the policy will cost. You don’t want to set your limits too low and underinsure yourself, but you also don’t want to set them unnecessarily high and pay for unneeded coverage.
Make a home inventory list to determine the exact amount of personal property coverage you need. This inventory will give you a dollar amount for the worth of your belongings. For your liability limits, most people will suffice with between $300,000 and $500,000 for coverage. You may choose higher or lower limits depending on your assets.
Consider the need for loss assessment and dwelling coverage in your policy. If you have a lot of money on hand or a comprehensive master policy, you may be able to forego these, although you should check your HOA reserves and be wary of the types of damage to which your complex is prone.
Ask About Discounts
You should always ask about or look into possible discounts when getting quotes. Carriers offer discounts based on age, military status, claims history, condo construction, burglar alarms, and more. You may also be able to bundle your policies and save between $10% to 20% on your condo insurance premiums.
Factors Affecting Rates of Average Condo Insurance in Maryland
The average condo insurance in Maryland is between $23 to $38 per month. Several factors influence your premiums and can potentially make them exceed this range. Some of the critical factors are:
- Desired coverage amounts
- Claims history
- Building characteristics
The location of your condo will influence how much you pay for HO-6 insurance in Maryland. Unit owners in locations more prone to property damage will have higher premiums. This is possible in high-crime areas or areas prone to flooding. It’s also possible that condos on or near the Atlantic coast in Maryland will have higher rates, as we touched on earlier, due to the increased chances of wind and flood damage from a hurricane.
The amount of coverage you want in your plan will affect your rates. The higher limits you want, the more you’ll pay. Also, your deductible influences your premiums – policies with lower deductibles have higher monthly payments.
Insurers will ask about your claims history when you get quotes. People who have filed several claims in the past three to five years will probably have higher premiums than someone who has never filed a claim. Providers believe that someone who has filed a claim in the past is more likely to file again, so they charge them more to offset this risk of a payout.
Certain characteristics of your building will also influence your premiums. Older buildings with greater wear and tear and a lack of modern construction safety methods will have higher rates than new ones. Older buildings are generally more prone to damage and more likely to spawn a claim.
Maryland Condo Insurance Laws and Requirements
Condo insurance isn’t required by law in Maryland. But, if you have a mortgage, your lender will require you to maintain a personal condo insurance policy. Also, some associations may ask residents to get insurance coverage.
Mortgage lenders stipulate insurance protection as part of their home loans to protect their investments. They’ll always require a loanee to maintain insurance coverage for the life of the loan, or else they risk force-placed insurance. You’re much better off choosing your own provider than going with a lender’s forced policy.
Even if you bought your condo without a mortgage, you may still be asked to get a policy by your condo association. Some complexes want residents to keep insurance to further limit the association’s and other residents’ liability.
How to Get Maryland Condo Insurance Quotes
When getting condo insurance quotes in Maryland, going with an independent insurance agency is beneficial. Independent agents work with multiple insurance companies, so they can provide you with quotes from various insurers. You can compare premiums from different providers in one place, saving you time and effort.
As an experienced independent agency at Clovered, we want to make getting Maryland condo insurance quotes easy. Use our online quoting tool to see plans from top providers in your area in minutes.
Protect everything your condo association doesn't with a custom condo insurance policy at an affordable price.
The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.