Best homeowners insurance in Maryland of 2022
For Maryland homeowners, finding the best home insurance might be a priority. And while price is a factor to consider — Maryland homeowners pay an average of $1,124 per year for $250,000 in dwelling coverage — there are other things to think about when evaluating a homeowners insurance company. Bankrate evaluated the largest home insurance companies by market share in Maryland and took coverage offerings, discounts, policy features, customer satisfaction scores and financial strength ratings into account. Our research might help you choose the best company and coverage for your needs.
Best home insurance companies in Maryland
Everyone’s insurance needs are different, so it is important to understand what company may best fit your unique situation. When reviewing the largest home insurance companies by market share in the state, Bankrate’s insurance editorial team analyzed average premiums obtained from Quadrant Information Services. We also reviewed coverage offerings, discounts, J.D. Power customer satisfaction scores and financial strength ratings from AM Best.
If you are looking for the best Maryland homeowners insurance companies, the following carriers may be a good place to start:
|Home insurance company||Average annual premium for $250K in dwelling coverage||J.D. Power customer satisfaction score|
*Not officially ranked by J.D. Power due to eligibility restrictions
Although its average rates are slightly higher than Maryland’s average, Allstate may make up for the higher premium by offering a wide range of coverage types to help you round out your policy. You may be interested in adding yard and garden coverage, electronic data recovery coverage or business property coverage. The company also offers several discounts, including savings for new homebuyers, security systems and claims-free customers.
Learn more: Allstate Insurance review
AmFam puts convenience and personalization at the center of its home insurance offerings. Homeowners can receive a quick quote online or can choose to take the time to speak with a licensed agent for a more personalized quote. AmFam offers a home insurance calculator, home insurance checklist and a personalized coverage assistant, all of which could help you decide what coverage types to purchase. Just like Allstate, though, American Family’s premium is higher than Maryland’s average, so it might not be the best first for customers on a budget.
Learn more: American Family Insurance review
Chubb has the most expensive premium on our list, but provides more standard coverage types than the other companies on our list. Electronic data restoration, lock replacement and tree removal coverage all come standard with Chubb. If you have a high-value home, Chubb may be a good fit; the company offers options tailored to the needs of luxury homeowners.
Learn more: Chubb Insurance review
State Farm has local agents across the country, so if you prefer to handle your insurance needs in person, the company might be a good fit. Additionally, State Farm offers solid online resources, including a good blog and home inventory tool. State Farm does not offer many discounts, but you may save by insuring multiple policies, having a newer roof or installing a security system. However, State Farm did receive a lower-than-average J.D. Power claims satisfaction score, which could indicate that customers tend to have a less-than-favorable claims experience.
Learn more: State Farm Insurance review
Although USAA does not qualify for official ranking with J.D. Power because it only sells insurance to active and retired military members and their immediate family members, the company consistently receives high scores. If you qualify for coverage, you may get some of the lowest rates in Maryland, as well as having access to military-focused coverage types like uniform coverage.
Learn more: USAA Insurance review
How much is homeowners insurance in Maryland?
The average cost of homeowners insurance in Maryland is $1,124 annually for a policy with $250,000 in dwelling coverage. This is less than the national average premium of $1,312 annually. Compared to surrounding states, Maryland’s home insurance premiums are higher. Homeowners in Virginia pay $1,013 per year and Pennsylvania homeowners pay just $730 per year.
The higher average cost for home insurance in Maryland may be due in part to its location on the coast. The state is more vulnerable to damaging weather events like hurricanes than states that are farther inland, like Pennsylvania. However, rates can vary even by ZIP code, so you may pay more or less based on your specific location within Maryland.
Home insurance in Maryland
Each state has its own unique set of features that impact premiums and coverage choices. If you live in Maryland, being aware of these geographical factors can help you tailor your insurance coverage to your needs.
Common causes of loss in Maryland
If you live in Maryland, you should be aware of what kind of losses might affect your home. Some common causes of damage include:
- Hurricanes: Maryland’s position on the coast leaves it vulnerable to hurricanes. Hurricanes can cause widespread wind and water damage.
- Theft and burglary: Having your personal belongings stolen is a nightmare scenario but is, unfortunately, a relatively common claim in Maryland.
- Fires: Home fires can start for a number of reasons and can be devastating.
- Water: Whether it enters your home from a burst pipe, a backed up drain line or a damaged roof, water can cause serious damage.
Understanding the common losses in your specific area might help you to choose appropriate coverage.
Home insurance coverage options in Maryland
If you live in Maryland, there are several additional coverage types you may want to consider, in addition to the standard home insurance coverage. These include:
- Flood insurance: Most counties in Maryland are at an increased risk of experiencing a flood event, according to the Federal Emergency Management Agency (FEMA). Flood damage is not covered by homeowners insurance. You must purchase a separate flood insurance policy to obtain coverage.
- Water backup coverage: This endorsement is designed to pay for the damages to your home’s structure, your personal property or both if you experience water damage caused by a sewer or drain line backup. This most commonly happens in basements when sump pumps cannot keep up in heavy rain but can also happen from any sewer or drain line.
- Identity theft coverage: Many homeowners insurance companies offer this endorsement, which helps pay for the cost of restoring your identity if it is stolen.
When shopping for home insurance, talking to a licensed agent can be helpful. An agent familiar with the needs of Maryland homeowners may be able to help guide you to appropriate coverage.
Frequently asked questions
What is the cheapest homeowners insurance in Maryland?
The cheapest home insurance in Maryland for you will depend on a variety of factors. Your home insurance premium is determined using a number of rating factors, including the age of your home, your claims history, what coverage options you choose and what discounts you qualify for. Getting quotes from several carriers might help you compare prices, to see which company offers the coverage you need at a price that fits your budget.
How do I get homeowners insurance in Maryland?
You will first need to get a homeowners insurance quote. To do this, you may be able to fill out an online quoting tool, call an insurance company or visit a local agency. You will need your address, your date of birth, the year built of your home and an idea of the coverage you would like to purchase. You may also need information about your home’s features, like if you have upgraded kitchen cabinets or custom features. Once you have received a quote and decided to proceed, a representative from the company will let you know the next steps. These may involve signing an application and making a payment, unless your policy is paid from your escrow account and billed to your mortgage company.
Do I need homeowners insurance in Maryland?
Homeowners insurance in the state of Maryland is not mandated by law, but your mortgage company will require that you have a policy. Even if you do not have a mortgage or home loan, homeowners insurance may be a smart purchase. Unless you are able to handle rebuilding costs on your own, it can be a good idea to have a policy to protect your finances against the threat of rebuilding or repair costs.
Can I get homeowners insurance in Maryland if I have bad credit?
Yes. Maryland does not use credit as a rating factor in the same way as other states. California, Hawaii and Massachusetts do not use credit as a rating factor at all. Maryland uses some credit-related rating factors when rating auto insurance policies, but does not use credit as a factor for homeowners insurance policies.
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.