Best Home Insurance Rates In Maryland

On average, your neighbors pay $78 a month.

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Compare Homeowners Insurance In Maryland

Maryland is also known as The Free State, because it was one of the first states to ratify the US Constitution. In modern times, The Chesapeake Bay State is the wealthiest state in the Union. However, extreme weather and hot summers make Maryland rich with homeowners insurance risks as well.

Average Maryland Homeowners Insurance Rates

How much is home insurance in Maryland? Maryland’s average homeowners insurance premiums are slightly lower than the rest of the country. The average cost of homeowners insurance in the state of Maryland is $982. That's a bit lower than the national average of $1,173. There are 19 states with lower average home insurance rates than Maryland.

Maryland Average Annual Homeowners Insurance Rates
  2013 2014 2015
Maryland Annual Average $904 $942 $982
Maryland Price Per Month $75 $78 $82
US Annual Average $1,096 $1,132 $1,173
US Cost Per Month $91 $94 $98
National Rank 33 34 32
Source: Facts + Statistics: Homeowners insurance

The graph below shows the change in average Maryland home insurance rates from 2011 to 2015, the most recent year the data is available. According to the III, Maryland homeowners insurance rates increased from $800 in 2011 to $982 in 2015, a jump of $182 dollars, or 22.75 percent.

Maryland average homeowners insurance rates

Choosing a homeowners insurance company in Maryland should be easier. Actually, it’s already easy. The key to finding the best rates is to get a homeowners insurance quotes comparison in Maryland from multiple companies.

Most Popular Maryland Home Insurance Companies

Last year, these were the most common home insurance companies reported by QuoteWizard users living in the state of Maryland. Out of the 14,079 Maryland homeowners that used QuoteWizard to request insurance quotes last year, 499 had no home insurance.

  1. Allstate
  2. Geico
  3. Nationwide
  4. Liberty Mutual
  5. Erie
  6. Progressive
  7. USAA
  8. Travelers
  9. AAA
  10. Farmers
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Best Homeowners Insurance Companies in Maryland

The above list shows the most popular home insurers in Maryland according to our users. But popular doesn’t always mean best.

Our study on the Best Homeowners Insurance Companies focuses on top of the line companies. In no particular order, these companies stand out among the rest:

  1. Amica: Best Overall
  2. MetLife: Best for Bundling
  3. Allstate: Best for Local Agents
  4. Hartford: Best for Seniors
  5. State Farm: Best for Pet Owners
  6. Travelers: Best for Flexible Policies
  7. Nationwide: Best Replacement Coverage
  8. Farmers: Best for Eco-Friendly Homes
  9. Liberty Mutual: Best for Quick and Easy Quotes
  10. Auto Owners Insurance: Best Claims Experience
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Top Maryland Home Insurance Company Market Share

Source: Insurance Information Institute
Rank Company Financial Rating Market Share
1 Allstate A+ 13.9%
2 Travelers Companies A+ 11.8%
3 Erie Insurance A+ 9.8%
4 USAA Insurance A++ 9.1%
5 Nationwide Mutual A+ 8.6%
6 Liberty Mutual A 8.0
7 Chubb Corp. A++ 1.8%
8 American Family A 1.7%
9 Hartford Financial A+ 1.4%
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Maryland Home Insurance Rate Factors

How much does homeowners insurance cost in Maryland? An insurer will take different factors into account when pricing your policy. Some will be based on the condition of the house. Others will be based on the area the house is in.

Your Personal Rate Factors

Your House

There are many factors an insurance company considers when calculating coverage. Unsurprisingly, your house is a main factor. There are a few house details that insurers focus on:

Your home’s age

It might not surprise you that older your home, the higher your rates. As your house ages, the odds of needing to file a claim increase. The chances go up even more if the house has been poorly maintained.

While over half of homes in MD were built between 1970 and 2009, 12 percent were built before 1939. A house in the 80-year age range will almost certainly come with higher rates than a newer home.

Roof age and quality

Your roof is one of the more important factors in your home insurance rate. An old, improperly maintained roof can cost you a lot of money if a storm comes in. Insurers charge higher rates for homes with old or poorly maintained roofs.

Asphalt shingle is probably one of the best options for Maryland weather. It insulates well, can handle heavy snowfall, and is inexpensive. You’re looking at a life expectancy of 15 to 25 years with asphalt, making it a good investment.

Maryland winters can be brutal. Storms can bring extreme wind, rain, and snow, all of which cause problems for a house with a weak roof. Making sure you have a strong roof with good weatherproofing is essential. And it can help lower your insurance rates!

Your home’s replacement cost

The replacement cost of a house is simply the price to rebuild the home after it has been destroyed. When you buy dwelling/structure coverage, you’ll want it to match the replacement cost. And dwelling/structure coverage is a huge part of a home insurance policy.

There is a big difference between a home’s market value and replacement cost. It could cost more to replace a house worth $160,000 in Hagerstown than a house worth $373,000 in Gaithersburg. Replacement cost only takes the house into consideration. Specifically, the house’s size, style, and general construction quality. Market value also includes the value of the land.

Claims History

If you file a homeowners claim, an increase in your insurance rate is bound to follow. A claim stays on your record for five to seven years. Should any other claims be filed during this time, your premium could go through the roof. You also risk having your policy cancelled by your insurer. Consider whether filing a claim is really necessary. If your claim is less than or just around the value of your deductible, it’s financially smarter to just pay out of pocket.

Pets

Almost half of Maryland’s households have a pet. If you’re a dog owner in MD, you should know that insurers consider some breeds as high risk. Owning one of these dogs can raise your premium. In some instances, coverage can be denied. This isn’t the case with every insurer. State Farm, for example, doesn’t charge different rates depending on your dog’s breed.

Credit Score

Insurers look at your credit score as part of the quote process. Credit debt, history, and limit are all factors considered. The average credit score in Maryland is 687. This is a little above the national average of 682.

Maryland Rate Factors

Weather

If your home is in an area with weather hazards, you’re going to pay more for insurance. And there’s not a whole lot you can do to change that fact. Fortunately, Maryland has a relatively low risk of natural disasters. In fact, one study found that Maryland has the seventh lowest rate of natural disasters in the country. 

All states across the East Coast, including Maryland, require homeowners to have a hurricane deductible as part of their coverage. It’s a bit more stringent in MD, as the law applies the deductible to the entire state if there’s a hurricane warning. The deductible can exceed the usual five percent mark. As an example, if you have a $300,000 policy and a five percent hurricane deductible is in effect, you would have to pay the first $15,000 of the repairs before your insurer takes care of the rest.

If you can’t find affordable home insurance, the Maryland Wind and Hail Underwriting Association is set up to help those who haven’t found affordable insurance elsewhere.

Property Crime

Like the weather, living in an area with a high property crime rate results in premium increases for all residents. Property crime rates vary from city to city in Maryland. Rockville has a property crime rate of 17.2 per 1,000 residents, while Ocean City has a property crime rate of 153.74 per 1,000 residents. Rockville homeowners see a vastly lower homeowners premium because of this.

The best way to keep rates in your region low is prevention. Installing a home security system is great for reducing insurance costs and giving you peace of mind.

Types of Home Insurance Policies

  • HO-1: Is the most bare-bones policy type that covers named perils like fire, hail, and theft.
  • HO-2: This policy has the same coverage as the HO-1 but also includes risks such as smoke damage, theft, and vandalism.
  • HO-3: The comprehensive coverage this policy provides makes it the most commonly used. Unless a peril is expressly excluded in writing, the HO-3s covers it. It covers your home structure as well as attached structures such as decks and garages. It also covers liability and your belongings as well.
  • HO-5: A HO-5 is just like the HO-3 except with fewer exclusions.
  • HO-6: This provides condo liability, belongings, and interior.
  • HO-7: This policy specifically covers manufactured or mobile homes, which aren’t covered by standard policies.
  • HO-8: Much older houses are risky to cover because replacement costs tend to be higher due to out-of-date materials or methods used. HO-8 coverage is based on the cash value of the home and allows for replacement with more modern materials.

Maryland Office of the Insurance Commissioner

Website:
Homepage
Insurance Commissioner:
Al Redmer, Jr.
Insurance Hotline:
(800) 492 – 6116 (Ext. 2458)
Office Hours:
Monday - Friday
9:00 am to 5:00 pm
File a Consumer Insurance Complaint
Complaint Page

Sources:

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