Best Homeowners Insurance in Maryland

Maryland residents enjoy a relatively high standard of living thanks to the state’s proximity to the nation’s capital and much of the northeast. Yet, the state has a distinct mid-Atlantic feel.

The latest census shows over two-thirds of Maryland residents own their houses. The best way for a homeowner to protect their property is with a homeowners insurance policy. This is especially important as Marylanders are exposed to hurricane and tropical storm damage, especially near the Atlantic coast.

Choosing the right Maryland home insurance policy takes a bit of time. We made this guide to help you along the way. Keep reading to learn the average cost of homeowners insurance in Maryland and how to get the best homeowners insurance in Maryland.

The average cost of home insurance in Maryland is $1,618 per year for $300,000 of dwelling coverage. This is a few hundred dollars higher than the same amount of homeowners insurance in the nearby states of Virginia ($1,474) and Pennsylvania ($1,318).

Keep in mind, though, that the number is just an average, and your premium can vary based on many factors, one of the most important being how much coverage you need.

The amount of coverage you need depends on the cost of your home, which is your replacement cost. Below are Maryland homeowners insurance rates at different coverage levels. 

Homeowners insurance provides protection in a variety of ways from certain covered perils. Common perils include weather-related damage, fires, and theft. If you suffer damage from a covered peril, your home insurance in Maryland can help you through one or more of the following coverages.

You will need to shop around and compare providers to get the best homeowners insurance in Maryland. There are currently over 140 homeowners insurers in Maryland. You should be able to find the policy you need at the price you want while also seeking optional endorsements and potential discounts.

The largest home insurance companies in Maryland are:

Combined, these companies make up over 60% of the homeowners insurance market in Maryland. Shopping around among these carriers may be a good place to start your home insurance hunt in Maryland. Note, though, that USAA is only available to military members and their families.

In addition to these large, popular providers, you may want to seek out quotes from smaller insurers in your area. Consulting an independent insurance agent with regional know-how and connections may also help. 

You’ll need to be aware of your policy exclusions to know you’re getting the best homeowners insurance in Maryland. For example, a standard policy doesn’t normally cover water backup, flooding damage, and certain high-value items like art and memorabilia. You can purchase riders or endorsements for additional coverage if you want.

You should also know the difference between replacement cost and actual cash value in your policy. When reimbursed for property damage or personal belongings, your provider will account for depreciation and thus lower your payout if you have actual cash value coverage. This contrasts with replacement cost coverage, where your provider will pay the full cost to replace what you lost.

As you might imagine, actual cash value coverage is cheaper than replacement cost coverage. You’ll commonly find these two options in personal property coverage, but you can encounter it in other structures coverage and other areas of your policy at times as well. 

The best homeowners insurance in Maryland should be able to accommodate your coverage needs concerning price, coverage, and more.

Travelers and State Farm have some of the cheapest homeowners insurance in Maryland, based on our analysis of some of the top companies. 

Finding the cheapest home insurance in Maryland will depend on many factors. Take a look at our chart below for average Maryland homeowners insurance rates from different carriers at two different coverage levels.

On top of these rates, don’t forget to ask about potential discounts to lower your premiums. You can get discounts for bundling, military status, new home construction, being claims-free, and much more. 

Some of the most critical factors that influence Maryland homeowners insurance rates include:

Your location is a major factor in homeowners insurance average costs in Maryland. Carriers can’t discriminate based solely on where your house is, but different areas have different factors, such as crime rates, home values, and susceptibility to natural disasters, that influence premiums.

For instance, in Maryland, homes in Baltimore City and Allegany and Garrett counties tend to have cheaper rates, while Anne Arundel, Carroll, and Howard counties can be more expensive for homeowners insurance.

Your deductible is a critical aspect of your policy that affects your rate. Choosing a higher deductible is an easy way to lower your premiums. Also, some policies in Maryland will have wind or hurricane deductibles. Homes susceptible to hurricane damage, like those on the Atlantic coast, may have higher premiums than homes where hurricane damage is less of a risk.

Owning certain dog breeds can raise your rates. Many providers are wary of pit bulls, rottweilers, and other breeds with a history of aggression. If you have one, a company may charge you more, exclude the pet from coverage, or not offer you a policy altogether.

Certain features about your home can increase your premiums, too. Some features that increase your liability risk, known as attractive nuisances, are pools, trampolines, and playground equipment. Some carriers will raise your rates for having these on your property.

No, homeowners insurance isn’t required by law in Maryland. However, if you have a mortgage, your lender will require you to carry home insurance on the property. If you don’t get or maintain coverage, your lender can force place insurance for you.

Mortgage lenders often require homeowners insurance as a requirement for their loans to protect their investment in a property. Thus, if your house gets damaged or destroyed somehow, you and your lender can recoup the value of your home from the insurance company.

If you don’t get your own policy, your lender can force place insurance on you. Force-placed insurance is more expensive and less comprehensive than a policy you can get yourself, so be sure to shop around and have the right policy ready when it comes time to close on your house.

The state of Maryland, like every state in the country, places regulations and rules on insurers to have a uniform set of procedures for carriers and consumers. Many of the mandates relate to coverage and communications between home insurance companies in Maryland and their policyholders.

For instance, in Maryland, carriers must offer you water backup coverage by law. Water backup coverage covers damage from sewer and drains backup. Some providers may include it by default, while for others, it may cost extra. You don’t have to purchase it. It may have a separate deductible from your standard all other perils (AOP) deductible.

The underwriting period in Maryland is 45 days from the start date of your policy. During this time, an insurer is double-checking all aspects of your coverage to verify that you’re an acceptable risk. If they find something that nullifies your coverage, your provider can cancel your policy as long as they provide a 15-day notice before doing so.

After the underwriting period, a carrier usually must wait until policy renewal before ending your coverage rather than canceling it outright, excluding circumstances like nonpayment or fraud.

Mobile and manufactured homes are popular types of housing. You need a separate type of insurance policy for a mobile or manufactured house. Mobile home insurance in Maryland includes many of the same coverages as standard home insurance, although the cost may differ.

A standard homeowners insurance policy is officially called an HO-3 form. A mobile home insurance policy is an HO-7 form. They’re largely similar, but the HO-7 has slight modifications in coverage to account for the different construction and requirements for mobile homes.

A primary difference is pricing. Depending on the size of the unit, coverage on a newer mobile home may be cheaper than a house of similar age. But, older mobile homes may encounter issues getting coverage if they’ve got unexpected modifications, outdated fittings, or other red flags.

If you reside in a mobile or manufactured home, mobile home insurance in Maryland is the best way to protect your property and belongings. In addition to your lender, some parks or communities may require you to have insurance on your mobile home before move-in. 

Getting home insurance quotes in Maryland from multiple companies is the only way to know you’re getting the best bang for your buck. To make this process easier, we created an online quoting tool that enables you to get quotes from some of the top-rated homeowners insurance companies in Maryland. We’re an independent insurance agency created with the goal of simplifying insurance for all.

Our team of licensed agents would be happy to help if you have any questions along the way. Feel free to call us between business hours at 833-255-4117. You can also email us anytime at  [email protected].