Best Home Insurance Rates In Maryland

On average, your neighbors pay $100 a month.

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Compare Homeowners Insurance In Maryland

We researched the top homeowners insurance companies in Maryland to make finding the best company for you easier. The study found that the average cost of home insurance is $1,198 a year in the state, which is just under the national average of $1,215. We made our picks by weighing four factors: affordability, availability, customer satisfaction and coverage options. These are our picks for the best home insurance companies in Maryland:

Cost of homeowners insurance in Maryland

Home insurance costs in Maryland have risen steadily in recent years but remain below the U.S. average. The average in the state is $100 a month, up from $86 a month in 2017.

Average homeowners insurance rates in Maryland
   Today 2017 2016
Maryland annual average $1,198 $1,037 $1,022
Maryland price per month $100 $86 $85
U.S. annual average $1,215 $1,211 $1,192
U.S. cost per month $101 $101 $99
Note: Average rates for today are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. Data from 2016 and 2017 is sourced from the National Association of Insurance Commissioners.

When finding the average home insurance rate for Marylanders, we saw premiums ranging from $827 to over $1,700. That shows just how much costs can vary between companies.

average cost of homeowners insurance companies in maryland

The variance in cost is one of the many reasons you should always compare quotes from multiple companies before making a final decision.

Best homeowners insurance companies in Maryland

When making our picks for the best homeowners insurance companies in Maryland, we looked at four primary factors: affordability, availability, customer satisfaction and coverage options. From our analysis, Erie, Travelers, State Farm and USAA stood out as the strongest choices in Maryland. Here's why.

Erie Insurance: our top pick

Erie Insurance is our pick for the best home insurance company in Maryland because it shows a track record of high customer satisfaction, great rates and the standard policy offerings. As the third largest home insurer in the state, you'll likely be able to find a local option with one of Erie's 12,400 agents across 12 states in the Mid-Atlantic, Northeast and Midwest.

Erie was one of the strongest performers in J.D. Power's 2019 home insurance study, receiving a 5/5 for overall customer satisfaction. Its National Association of Insurance Commissioners (NAIC) Complaint Index, which measures the amount of complaints a company receives relative to its size, was also impressively low at 0.16. This is one of the lowest (and therefore best) complaint indexes you'll see and is second only to USAA's complaint index in Maryland.

To take advantage of Erie's excellent customer service, you won't have to pay an arm and a leg; Erie had an average rate of $970 a year in Maryland according to our study, which is almost 20% below the state average of $1,198. With below-average rates, above-average customer service and the coverage you'd expect from a nationwide leader in home insurance, we recommend you consider Erie for your insurance needs.

Travelers: best for cheap rates

Travelers had the cheapest rates we saw in Maryland with an average of $827 a year, which is over 30% below the state average. However, affordable rates alone aren't enough to make it one of our top picks — Travelers has decent customer service and policy offerings as well.

Travelers' NAIC Complaint Index was 0.30 in 2018. That's below the national average of 1.0, but above much of its competition in Maryland. Its J.D. Power overall customer satisfaction rating of 2/5 tells a similar story as the complaint index — not a best-in-class customer service experience, but not far off the mark. Especially considering Travelers' below-market rates, we think it offers good value.

Like many companies, Travelers offers a handful of discounts for even more ways to save. It advertises common discounts, like for bundling and centrally monitored home security systems. Two of Travelers' discounts we don't frequently see are its Home Buyer and Green Home discounts. If you've purchased your home within the last 12 months or have a LEED-certified home, there may be additional discounts available to you. Travelers' incredible rates, decent service and savings opportunities make it a great pick for folks looking to save money on their home insurance.

State Farm: best home and auto bundle

When researching our recommendation for the best company to bundle home and auto in Maryland, we looked for a company that performed strongly in both products and had reasonable rates. State Farm took the cake for its average to above-average customer satisfaction scores for homeowners and auto insurance and for its fair rates.

State Farm advertises that new policyholders who bundled home and auto saved an average of $854 a year. Those substantial savings come in addition to an average home insurance premium of $891 a year, which is about 25% below the state average. Bundling savings isn't all State Farm has to offer, as it also has great customer satisfaction scores in home and auto.

State Farm received good customer satisfaction scores overall from J.D. Power's home and auto insurance surveys — 4/5 and 3/5, respectively. Additionally, State Farm's NAIC Complaint Index for home insurance was 0.20 in 2018, which is among the lowest, and therefore the best, in the state.

USAA: best for veterans and military families

USAA insurance products are only available to military service members, veterans and their families. If you qualify for coverage, we think USAA is one of the best homeowners insurance companies around, combining top-notch coverage, customer service and rates. Maryland is home to over 370,000 veterans, which makes it no wonder that USAA is the fourth largest home insurer in the state.

USAA homeowners insurance is designed with military families in mind. For example, military uniforms are covered if you are on active or reserve duty. If you are deployed, USAA can adjust your homeowners policy coverage in case you need to rent your home while you're gone or want to sell it. Lastly, USAA provides $5,000 of identity theft protection standard with its policies. This is a standout coverage, as most of the time we see identity theft protection as an add-on.

By the numbers, USAA has an average home insurance rate of $1,051 a year in Maryland, almost $150 below the state average. Its fair rates are accompanied by a J.D. Power overall satisfaction rating of 5/5 — the only company on our list besides Erie to receive the maximum score. If you qualify for USAA products, we highly recommend including it in your search to find the best home insurance company for you.

The biggest home insurance companies in Maryland

Large, national brands control the Maryland homeowners insurance market for the most part.

Maryland home insurance market
Company Market share Overall customer satisfaction rating* 2018 NAIC Complaint Index
State Farm 18% 4/5 0.20
Allstate 12% 3/5 0.57
Erie Insurance 11% 5/5 0.16
USAA 11% 5/5 0.15
Travelers 10% 2/5 0.30
Liberty Mutual 8% 2/5 0.53
Nationwide 7% 2/5 0.24
American Family 5% 3/5 0.54
*according to 2019 J.D. Power home insurance survey

Not all national carriers are made the same. For details, check out our rankings of the best homeowners insurance companies in the U.S.

Home insurance rates in Maryland by city

Maryland's two largest cities — Baltimore and Frederick — see different rates. Baltimore's average home insurance costs 35% above the state average, at $1,613 a year. Frederick, on the other hand, averaged only $953 a year.

Average yearly homeowners insurance premium by city
City Average Difference from state average
Annapolis $1,013 -15%
Aspen Hill $922 -23%
Baltimore $1,612 35%
Bel Air South $1,258 5%
Bethesda $916 -24%
Bowie $1,271 6%
Catonsville $1,258 5%
Clinton $1,318 10%
Columbia $965 -19%
Dundalk $1,271 6%
Ellicott City $994 -17%
Essex $1,214 1%
Frederick $953 -20%
Gaithersburg $970 -19%
Germantown $964 -20%
Glen Burnie $1,133 -5%
Hagerstown $1,023 -15%
North Bethesda $912 -24%
Odenton $1,033 -14%
Olney $969 -19%
Owings Mills $1,237 3%
Potomac $917 -23%
Rockville $924 -23%
Severn $1,063 -11%
Severna Park $1,037 -13%
Silver Spring $972 -19%
Towson $1,290 8%
Waldorf $1,259 5%
Wheaton $926 -23%
Woodlawn $1,311 9%
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Home insurance rates in Maryland by county

We found that Worcester was the most expensive county for homeowners insurance in Maryland, at 52% above the state average. This is to be expected because it lies along the Atlantic coast, making homes susceptible to Atlantic storms.

Average yearly homeowners insurance premium by county
County Average annual rate Difference from state average
Allegany $1,255 5%
Anne Arundel $1,063 -11%
Baltimore $1,248 4%
Baltimore (city) $1,633 36%
Calvert $1,134 -5%
Caroline $1,195 0%
Carroll $974 -19%
Cecil $1,084 -10%
Charles $1,257 5%
Dorchester $1,371 14%
Frederick $979 -18%
Garrett $1,223 2%
Harford $1,266 6%
Howard $979 -18%
Kent $1,111 -7%
Montgomery $946 -21%
Prince George's $1,347 12%
Queen Anne's $1,108 -8%
Somerset $1,361 14%
St. Mary's $1,263 5%
Talbot $1,231 3%
Washington $1,042 -13%
Wicomico $1,370 14%
Worcester $1,816 52%
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Flood insurance in Maryland

Flooding should be a concern for homeowners in Maryland, especially those in coastal areas. Home insurance almost never covers floods, so you'll need a separate flood insurance policy to be covered. You'll usually have two options: private flood insurance or a National Flood Insurance Program (NFIP) policy.

NFIP flood insurance is far more common than private flood insurance. An NFIP flood insurance policy costs only $584 a year in Maryland on average. Between 1996 and 2016, NFIP paid almost $193 million in flood claims to Maryland.

New research suggests that Maryland flood risk is greater than previously thought, however. A new analysis by First Street Foundation found 2.3 times more properties at risk than the previous FEMA estimates, or an additional 75,029 properties. In Montgomery County, for example, First Street found 7.9 times more properties at risk than FEMA.

Maryland properties at additional flood risk
Most Populated Counties FEMA total properties at risk First Street total Properties at risk Magnitude difference
Maryland 58,653 133,682 2.3x
Montgomery County 1,302 10,224 7.9x
Prince George's County 4,342 13,269 3.1x
Baltimore County 1,212 9,772 8.1x
Anne Arundel County 3,273 10,066 3.1x
Howard County 2,482 2,586 1.0x
Frederick County 1,487 4,017 2.7x
Harford County 1,346 2,325 1.7x
Carroll County 548 2,377 4.3x
Charles County 1,022 3,215 3.1x
St. Mary's County 1,958 3,204 1.6x

First Street's new calculation takes the rise in sea levels, creek floods and additional rainfall into account where FEMA does not.

Maryland homeowners insurance laws

States have their own insurance regulations and governing bodies, and Maryland's is called the Maryland Insurance Administration. We've highlighted some of the most important homeowners insurance laws in Maryland below.

  • It is illegal for insurance companies to use your credit score in determining your rates.
  • Homeowners insurance companies must give you the option to purchase sewer and drain backup coverage when you initially apply and every time your policy is renewed.
  • Your insurer must give you 45 days' notice if cancelling or not renewing you policy, or 10 days' notice if the cancellation is due to nonpayment of premium.

Methodology

We analyzed 1,184 quotes according to the following specifications:

  • Single family home built in 1976
  • Dwelling coverage: $344,077
  • Personal property coverage: 50% of dwelling ($172,039)
  • Other structures coverage: 10% of dwelling ($34,408)
  • Loss of use coverage: 20% of dwelling ($68,815)
  • Liability coverage: $100,000
  • Deductible: $1,000

We chose the build year and dwelling coverage because 1976 is the median build year of owner-occupied units in Maryland, and the median home value is $344,077. All coverage amounts were typical percentage amounts based on the dwelling coverage for an HO-3 homeowners insurance policy.

All geographic and demographic information was sourced from S&P Global Market Intelligence, and flood insurance data was sourced from FEMA.

Sources:

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