Homeowners Insurance Maryland

maryland auto insurance

Your home is the most valuable property that you own, and protecting your investment should be on your list of priorities. The lender may require you to have homeowners insurance since they have an insurable interest. But, where you will buy the home insurance depends on your choice. Policy varies from insurance company to another, and you can compare them to find the best coverage at the most affordable cost.

Maryland homeowners insurance usually comes as a package. It consists of different types of policies for the house, contents, living expenses, personal liability claims against the insured and other household members, at the same time, medical payments to others. This bundle is put into one premium amount.

What Does Homeowners Insurance Cover

Maryland homeowners insurance covers your home and other parts of the structure, its contents, and covers damage due to these events:

  • Fire
  • Lightning
  • Windstorm or Hail
  • Vehicles
  • Theft
  • Glass Breakage
  • Smoke
  • Explosion
  • Riot or Civil Commotion
  • Aircraft

The homeowners policy has two main sections. Section 1 covers including its content, the building, other structures and personal property. On the other hand, section 2 provides personal liability for the policy owner. If someone was injured inside your property or home, if a tree inside your property falls on your neighbor’s roof, this home insurance can protect you from expenses. You may buy additional homeowners insurance for full protection.

Homeowners policy also covers loss of use, additional living expenses caused by fire, and other insured loss on your property. Liability coverage is your protection from injuries or damages you caused, your family or pet on someone. Medical expenses due to injuries at your home of non-family members are covered by medical payments insurance. There are some exclusions, however, that you should consult with your agent.

How Much is Homeowners Insurance in Maryland

Despite Maryland’s mid-Atlantic location, the average annual premium for homeowners insurance is around $866. It is about 30% of less than the national average of $1,288. The exact amount you will pay varies depending on where you live and some related factors.

Maryland is considered a low-risk state because it is not prone to natural disasters. However, as Maryland homeowners who apply for a home insurance policy, insurance companies will have to assess your risk factors when computing your insurance quote. Some of the factors that can affect your premium include having a record of past claims, your home has an older frame, and your home is far from a fire station or hydrant.

Homeowners insurance is not a luxury, but a necessity. Besides protecting your home and possessions from damage or theft, most mortgage companies require their borrowers to have home insurance coverage for the full or fair value of the property. In fact, even landlords need their tenants to maintain renters insurance coverage. However, required or not, it is a wise decision to have this kind of protection.

Some Ways to Lower the Cost of Homeowners Insurance in Maryland

An insurance agent can review your needs and help you shop or check on different insurance companies to find the appropriate home insurance for you. Expect that quotes will be different and the terms & conditions from several insurers but for the same coverage.

  • Discounts are available for homeowners insurance if you have a security system installed in your home, you have deadbolt exterior locks, fire extinguishers, and smoke detectors. Your agent can help you take advantage of these.
  • Discounts are available when you purchase homeowner insurance together with auto insurance. Try to see if there are other policies that you need, and there are certainly lower premiums for multi-policy holders.
  • Even though your home and its content are at risk of various harm and perils, the land it sits on is not. So do not include the value of your lot when considering the amount of your insurance.
  • The increasing deductible on your policy will help you save from paying larger premiums. The amount saved will be different depending on the insurer and your location.

Are Your Personal Property Covered When You are Not Home

Yes, your personal property is still protected wherever you are in the world. If you lost something that is covered while travelling, you could make a claim for a refund to your insurance company.

Difference Between “Replacement Cost” and “Actual Cash Value”

Losses covered under a homeowners policy can be paid on actual cash value or on a replacement cost basis.

Actual Cash Value

When using the “actual cash value”, the property loss will be based on the value less depreciation. It is less expensive.

Replacement Cost

Replacement cost covers the policyholder and reimburses the amount necessary for the article of similar type and quality at current prices.

To receive this benefit and to prevent spending out of your pocket, you should maintain a policy limit of not less than 80% of the replacement cost of your home.

Who Has the Cheapest Home Insurance in Maryland

To ensure you are protected in events like storms or hurricanes, you have to purchase a Maryland homeowners insurance policy that offers the right level of homeowners insurance without paying higher premiums. You can use an online quote tool to help you narrow down your option. The following are the top insurance companies in Maryland that would help you save money each month while giving you peace of mind.

Erie Insurance

Erie Insurance is an excellent pick for Maryland homeowners. It does not only offer a lower insurance rate, but it is consistent in providing the best customer service and financial strength. It is on the list of top 50 performing property-casualty insurers in 2018.

State Farm

State Farm is a top provider of homeowners insurance in Maryland due to its broad coverage, resources, and tools for customers, as well as their reputable claims services department. Other than the standard home insurance, State Farm offers protection for farms and ranches, small business properties, manufactured homes, and some older homes.

Amica Mutual

Amica Mutual has received an A+ rating for being the best financial strength and issuer credit. It also won “Highest in Customer Satisfaction Among National Homeowner Insurers” awarded by J.D. Power. It is a provider of dependable, personalized service, and flexible homeowners insurance coverage options at low prices. Amica Mutual offers liability protection and covers home and other structures on the property, temporary repairs. It is to prevent future damage after a loss of credit card and an increase in living expenses.


Allstate offers valuable tools for education and at the same time, resources to help get answers to any insurance-related questions. It provides a premium too to let you know that different factors such as age, home, installation of security devices can impact the cost of your annual Maryland homeowners insurance policy. It keeps a secure and up-to-date inventory of your belongings and looks out for your budget by giving a generous discount option.

Farmers Insurance

Farmers Insurance is one of the best and reliable claim tools for homeowners. They received an A+ rating from the Better Business Bureau. It offers filing options, which can be through its iClaim app, online, in-person with a local agent, or through the phone. Farmers Insurance has a very informative and helpful app and website with detailed FAQs and thorough explanations of your policy to make sure you know precisely your home insurance coverage and how to respond in case of emergency. It also offers discounts for multi-policy bundling, installation of security devices and storm shutters.

Car Insurance Cost in Maryland

The average cost of car insurance in Maryland for minimum coverage is $1,180 per year or $98 per month. Coverage options will vary depending on how much coverage you want to purchase. It can also vary widely depending on the driver’s residence and the insurance company from where they are going to buy the coverage. For instance, Baltimore car insurance is more expensive than the rest of the cities in Maryland. The insurance quotes and insurance rates of the most expensive carrier can be twice the cost of the cheapest insurer. Shopping around can help in finding the best insurance rate. 

A minimum coverage auto insurance policy only complies with Maryland state law’s minimum requirements. This coverage does not include comprehensive and collision insurance coverage that full coverage car insurance has.

The collision and comprehensive insurance cover the vehicle’s damage regardless of who was at-fault or who caused the accident.

Flood Insurance Cost in Maryland

Flood insurance covers two insurable properties: the building and its contents. It means your building and possessions are protected except the land they occupy. Almost all states have experienced floods or flash floods. But most standard homeowners policies do not cover flood damage. However, buying flood insurance is more affordable than you think. The average policy cost is around $540 per year and $119 for homes in moderate to low-risk locations. 

When buying a floodplain property, it is important to consider flood insurance. Homeowners or communities that are part of the National Flood Insurance Program (NFIP) can avail the flood insurance policy from them. All the regulated institutions or federally insured are required to have flood insurance policies on all new loans to protect structures. It is obligatory for all federal or federally associated financial assistance for the construction of buildings in Special Flood Hazard Areas (SFHAs).

The Bottom Line

Your home can be your largest investment which you have to protect through acquiring a good home insurance policy. Home insurance Maryland is definitely worth the cost because, in the long run, it will save you a fair amount of money and time. Without insurance benefits, home repairs are more expensive than paying for premium and deductible. Most mortgage lenders mandate home insurance by requiring proof before the settlement. Maryland homeowners insurance is also mandatory if you are living in a property that is part of the condo association or homeowners association (HOA).

Maryland homeowners insurance will protect you against losses that can be expensive. So, learning this important information on home insurance policies will help you find an appropriate policy at a reasonable cost. Generally, you can save money if you go for less expensive and a higher deductible. Search and shop around to find the balance that will work for you and your budget.

At the same time, acquiring multiple policies from the same insurance company of Maryland will help you avail a discount and considerable insurance rates. Considering other types of insurance like flood insurance coverage and car insurance in Maryland can give you peace of mind from worries of your properties from getting exposed to risks of fire, weather, theft, accidents and other disasters.