On average, Marylanders are paying $1,954 every month on homeownership costs. There are 2.4 million homes in the Free State, 67% of which are occupied by owners.
- Population: 6,042,718
- Average value of homes that’s occupied by owners: $296,500
- Households: 2,181,093
- Average household income: $78,916
- High school grad or higher, percent of people age 25 years +: 90%
- Average travel time to work: 33 min
The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.
Maryland state laws do not make it obligatory for residents to get their homes insured, but the first thing that lenders or banks do after calculating the mortgaged property price checks if it is insured or not. Hence, homeowners insurance not only helps you secure your house from criminal threats but also helps you gain loans.
The state is more prone to floods, hurricanes, and tornados. In fact, the tornado index of Maryland is 121.9. The higher the index, the higher the possibility of the state being affected by the calamity.
Apart from this, Maryland was among the 14 states affected by Hurricane Irene in 2011. It was also among those 12+ states that were affected by Hurricane Sandy in 2012, which was the fourth most devastating hurricane in the history of the USA and caused a total of $18.75 billion loss in property. $410 million in insurance claims were recorded in Maryland. The second costliest hurricane to hit Maryland was Ivan in 2004.
About 125,000 homes are at risk of damage from storm surge in Maryland. The estimated reconstruction costs range from $4.3 billion to $29.8 billion. Hence, it is highly important to keep your house secure with insurance.
MD Average Premiums
The average annual cost of homeowners insurance in Maryland is $1,022, while the national average is $1,192 in 2016, which is the latest available data from Insurance Information Institute (III). This translates to a monthly average premium of $85 in Maryland and $99 in the USA. Hence, Maryland’s average homeowners insurance premiums are $170 lower than the rest of the country.
Average Maryland Home Insurance Premiums
|National annual average||$1,192||$1,173||$1,132|
Popular Homeowners Insurance Companies In Maryland
III collected information on the top 10 insurance companies in the state that has the largest home insurance market shares in Maryland along with the most written direct premiums in 2017. The top 3 companies from their list have been mentioned below along with the discounts they offer so that you can choose the best one for your house. We were not able to review all of the companies in Maryland, therefore, it’s wise to research more companies to ensure you find the best one for you.
State Farm is the leading insurance company to acquire an 18 percent share of Maryland’s homeowners insurance market. It is among the leading insurance companies throughout America, being established in 1922 and developing its reputation since then.
This company has the best insurance ratings so far. It has received high marks from both AM Best and S&P. AM Best gave it A++ (Superior), which is the highest rating granted, and it received AA (Very Strong) by S&P. JD Power ranks the company with a 3 (About average) Power Circle Ratings in overall satisfaction, policies, price, interaction, and claims.
The company charges a little higher than other insurance providers, but its complaint ratio, claims paying ability and client satisfaction show that it is totally worth it. State Farm works with a network of around 18,000 agents in 50 states. However, the company does not provide all features in all states.
It values its customers and their loyalty, which is why it offers various discounts such as the Multiple Line Discount that allows up to 17% off if you buy auto insurance with homeowners, renters, condo, or life insurance.
Allstate is the second leading insurance company to occupy the home insurance market with a 12 percent share in Maryland. It claims to be dedicated to dealing with the damages to give back to society, and to provide a difference that other insurance companies do not provide.
The company has 8 subsidiary companies dealing in property insurance. According to JD Power, the claims and customer satisfaction ratings for the company turn out to be About average, scoring 822 out of 1,000 in their 2018 U.S. Home Insurance Study. AM Best rates it A+ (Superior) for its financial strength, while S&P gives the company AA (Very Strong), which is the agency’s third-highest rating.
Allstate works in 40 states and deals in insurance policies for homes, apartments, condos, and mobile homes. It is one of the biggest homeowners insurance companies in the country, though its insurance premium rates are quite affordable as compared to other top insurers.
It facilitates its customers by giving multiple types of discounts such as the Multiple Line Discount which gives up to 30% off if you combine homeowners insurance with other insurance packages. You are also entitled to receive a 20% off if you switch to the company without previously making a claim for home insurance.
Erie was born on April 20, 1925, in Pennsylvania. It acquires 11 percent of the total home insurance market share in Maryland. The name is not new in the market and has developed its roots deep down. It is, in fact, the 9th largest home insurance company in the US.
Erie has been lucky enough to receive a high ranking from JD Power for in 2018 with a score of 828 out of 1,000 for overall customer satisfaction. It has made its place in the market and the good books of consumers and retained it. Erie has also marked a remarkable place in AM Best’s books and received a Superior rating of A+.
This company deals in home, auto, life, and commercial insurance. It has built up a network of insurance agents working independently. The company operates in Washington DC and 12 states. It does not fail to make most of its clientele happy and intends to put customer service above everything. Erie has employed over 5000 employees and currently provides 5 million insurance policies.
It makes sure to attract its prospects by giving discounts ranging from 10% to 35%, depending on the state you live in or the area where you buy insurance for your car and home.
Maryland Home Insurance Companies: Market Share and Summary of Ratings
|Rank||Insurer||Market Share %||AM Best||S&P||JD Power|
Source: Insurance Information Institute, AM Best, S&P, JD Power
A Word On Condo Coverage
If you are living in a condominium, you won’t have to worry too much about having homeowners insurance. Maryland law demands the Condominium Association acquire insurance for all condos. Hence, condo owners can be protected by two kinds of insurance: the master policy and the individual policy.
The master policy is the one acquired by your Condominium Association and covers the units against loss. It protects you from covered perils and damage to basic structures like floors, walls, fixtures, carpeting and cabinets. It also covers injury to others.
An individual policy is bought by the individual condominium unit owner and provides coverage for their personal belongings and the contents of their home.
Considerations to keep in mind
As mentioned above, in 2016, the average premium for Maryland homeowners insurance is $1,022, which is lower than the average national homeowners insurance rate of $1,192. Maryland is ranked 30th out of 51 states in the US for home insurance premiums. Almost 67 percent of homes are occupied by their owners in Maryland, which is higher than the national average of 63 percent.
In Maryland, homeowners can keep several considerations in mind when planning a budget for home insurance. Insurance policy rates vary based on the type of property covered and the number of perils, or losses, that the homeowner seeks coverage for. In this state, you can choose to have coverage for specific mishaps, such as fire, wind, hail, vandalism, or theft, or open coverage, which covers all categories of potential loss unless a loss is specifically excluded. Open coverage plans are generally more expensive up front, as they afford the most coverage in the event of a loss. Keep in mind that most Maryland home insurance plans do not extend coverage for flood damage. You may be able to get additional flood damage coverage through the federal government or as an add-on policy from some providers.
When shopping around for insurance policies to meet your needs and budget, be aware that you may be eligible for better prices based on certain conditions. Brick houses in Maryland are less expensive to insure than framed houses because they are less susceptible to damage from wind. Newer homes cost less to insure than older homes.
Rates for Maryland home insurance vary based on access to and quality of local fire protection; your insurance rate will be lower if you live close to a fire hydrant, and living in a town with a high-quality local fire department will lower your premium rates.
Sometimes, home insurance companies offer discounts for certain conditions. You might be entitled to a lower premium payment if your house has anti-theft mechanisms installed, such as deadbolt locks and a security system. You may get a higher discount on your premium if you have an alarm system that is connected to a local police or fire station. Purchasing multiple policies from the same company (such as home and car) can save money, as can being a long-term policyholder (in other words, staying with the same company for several years). Some insurance companies offer a discount if you insure a new home through them. Be sure to ask about coverage for other items of value to you, such as jewelry, antiques, and collectibles. You may need to purchase additional special coverage for these items. You should also inquire about coverage for mold damage, and whether or not the policy you are considering has separate deductibles for wind, hurricanes, and lightning.
Maryland insurers cannot adjust premium rates for several factors, including your prior claim history, your credit history, and whether or not you have been the victim of a violent crime in the past. Whatever plan you choose to go with, make sure that your dwelling policy limits are at least 80 percent of the home’s replacement cost.
For more assistance, please contact your local state department of insurance:
Maryland Insurance Administration