Home Insurance in Maryland


UPDATED: NOV 2020 | 2 MIN READ

When you rank all 50 states from most to least expensive for annual homeowners insurance premiums, Maryland comes in five spots below the middle of the list. High incomes and higher levels of education are probably contributing to the savings for most homeowners, especially for those living farther away from the Appalachian Mountains where annual snowfall is heavy and does a lot of damage. Property crime rates are also slightly lower than the national average. But flooding is still a problem due to the state’s many rivers and low-lying areas, so be sure to invest in some flood insurance from the NFIP. 

  • Fun fact – During the year 1783, the capital of Maryland – Annapolis – was also, temporarily, the first capital of the United States. 

Average Rates in Maryland

If you take all fifty states and list them from the most expensive to the least expensive for home insurance, Maryland falls in comfortably at the #30 spot. What does that mean for you, as a homeowner? It means you’ll be paying less than the national average for your annual premiums. Almost $200 less, in fact (average premiums are around $1,037 for most Maryland homeowners). That savings puts money in your pocket that you can use to pay bills and take care of your family. 

Here’s another bit of good news: Maryland renters are saving money on their renter’s insurance, too! By almost $20 whole dollars per year. While the national average is around $180, Maryland renters are only paying about $161 for their annual premiums. It might not seem like that much in savings, but any savings in the current economy is a welcome reprieve. 

Maryland Legal Insurance Requirements

Rules and regulations surrounding home insurance in Maryland are pretty standard compared to the rest of the country. Like in most other states, there’s no federal or even local legal mandate to maintain coverage. However, your bank may impose one anyway. If you happen to still be paying off a mortgage or other home loan, your house and the land it sits on is still, technically, the property of the bank until it is fully paid off. And they will want to protect that investment by making sure you have a comprehensive homeowners insurance policy to cover any damages. The good news, for some homeowners, is that you’re free to discontinue your policy after you’ve finished making payments; but most homeowners choose to maintain coverage because the financial risk of going without will likely be much more expensive than an annual premium. 

Common Risk Factors in Maryland

Part of the reason Maryland homeowners are getting such a good deal is because most of the risks to homes in the area are less extreme than in other parts of New England. To be fair, Nor’easters and winter snowfall are still common problems, as is flooding in the many river valleys that are located in the state. But the vast majority of snow-related damage is covered by your average homeowner’s insurance policy, and flood insurance from FEMA or any other private entity who covers it are readily available to most homeowners. 

Unfortunately, it’s not always so easy to get adequate coverage for Maryland homeowners who live in high-risk areas. There’s good news and bad news on this front. The good news is that the federal FAIR program, managed by the MDJIA in Maryland, can help provide a basic level of coverage for homeowners who have been repeatedly rejected by insurance companies in the standard market. The bad news, however, is that you can and should expect to pay a substantially higher annual premium for less coverage than you would get through a standard insurance company. 

Insurance Demographics/Statistics in Maryland

Did you know that there are lots of issues, aside from major perils that exist in your area, that can affect your annual home insurance premiums? We’ve already had a chance to discuss the major ones, so those are out of the way. But there are a few other factors you should be aware of which, if they are within your means of control, could potentially help you get a better rate on your homeowners insurance policy. 

  • Home Value – Did you know that average housing prices in Maryland are over $60,000 more expensive than the national average at $326,553? There’s a very important reason why this matters. With all forms of insurance, home insurance included, the more coverage you have to purchase, the more expensive your premiums will be. And if you have to purchase more coverage in order to hit the 80% replacement cost threshold that most home insurance agents recommend because your home’s value is higher than average, that is going to increase your expenses to a significant degree.
  • Property Crime – Luckily for Maryland homeowners, however, you’re actually less likely to be a victim of property crime in your home state than you are in other parts of the country. Maryland homes have a 1 in 49 chance of being struck with property crime, or 20.33 crimes per 1,000 residents. The national average, on the other hand, is 1 in 43. 
  • Your Income – Another factor working in Maryland homeowners’ favor is their high annual income. Maryland residents make over $20,000 more per year than the national average, at around $86,738 for the average household. Why does this help with homeowners insurance premiums? Because your provider knows that you are more easily able to pay your premiums on time in full whenever they are due. That level of financial responsibility usually earns people discounts. 
  • Education – Lastly, but certainly not least, are the higher levels of education which are helping Maryland homeowners save money on premiums. The higher your personal level of education, the more likely you are to get a discount – but the size of that discount depends on the company managing your policy. Still, 40% of adults in Maryland have at least a bachelor’s degree or higher, which is significantly better than the national average of 32%. 

Where To Purchase Home Insurance in Maryland

Did you know that over 56% of homeowners never bother to shop around for a new deal when their home insurance policy comes up for renewal? In a way, this is like leaving money on the table. Different companies are constantly thinking of new and innovative ways to compete for your business, and refusing to shop around – especially if you’re in the 83% majority of people who don’t bother to comparison shop online when you do shop around for new homeowners insurance – is probably costing you hundreds of dollars each year in excess premiums.

Here at Agile Rates, however, we can help. We have connections with dozens of home insurance providers in your area who are ready to please new customers like you with a better deal on annual premiums. We’ve done all the hard leg work for you so that you can compare quotes quickly and easily among the most reliable and legitimate homeowners insurance companies in your zip code. We can help you find a better deal today, in a matter of minutes!

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