Maryland Homeowners Insurance

Homeowners Insurance in Maryland: Complete Consumer Guide

Want to move to Maryland or already own a home here? There are some interesting facts about your home state. Maryland became the 7th state on April 18, 1788. The capital of Maryland is Annapolis, and was temporarily the capital of the United States from 1783 to 1784. The state bird of Maryland is the Baltimore oriole. The state flower of Maryland is the black-eyed Susan. And the state tree of Maryland is the white oak. Annapolis is the sailing capital of the world. Sometimes, it’s called “America in Miniature” because so much diversity is found on land and in its waters. Almost half of the land surface of Maryland is covered by forests, including 47 state parks. The United States Naval Academy was established in Annapolis in 1845.

Types of Homeowners Insurance policies in Maryland

What kind of homeowners insurance policy do you need for your home? Not certain? Here is a look at the different types of homeowners insurance policies.

HO-1 Called the “basic form,” the HO-1 form covers the 10 most common perils. But you won’t find this policy everywhere. Some insurance companies do not offer HO-1 forms.

HO-2 Known as the “broad form,” the HO-2 form provides more limited coverage. But the HO-2 form still provides more coverage than a HO-1 basic form.

HO-3 This type of insurance is the most widely purchased type of insurance. The HO-3 form provides coverage for named perils and personal property. With a HO-3 form, your insurance company will pay to repair or replace personal belongings damaged by 16 covered perils. These perils include fire, smoke, lightning, windstorm, theft, falling objects, the weight of snow, ice and sleet, water damage, hail, explosions and vandalism.

HO-6 The HO-6 insurance form is for condominium units. This type of coverage is typically “walls-in” coverage and may protect the condo unit’s walls, ceilings and floors against 16 perils. The HO-6 form also includes coverage for a condo owner’s belongings.

HO-8 The HO-8 form is for older houses and covers 10 perils. The HO-8 form is paid on an actual cash value basis, which is the cost of the home items minus depreciation.

What factors affect rates on homeowners insurance in Maryland?

Many factors impact the rate on a homeowners insurance policy. Let’s look at a few. For example, the construction materials of your house are weighed heavily because they determine how much it’ll cost to rebuild and also may or may not be flame resistant. How much it will cost to replace all your personal belongings is another factor. Whether you own a swimming pool or a trampoline also affects your insurance rate. Do you own a dog? You are liable for dog bites and injuries caused by your pet and this affects homeowners insurance rates. Your credit plays a role as well. If you have good or excellent credit you will pay a lower insurance rate than a homeowner with bad credit.

Top 5 Disasters in the State of Maryland

Maryland federally declared Flood as the most common disaster with 10 counts since 1953, followed by Hurricane, Severe Storms, Snow, and Biological disasters. Here are the top 5 federally declared disasters in the state of Maryland:

Rank Declaration Title Disaster Number
1 Flood 10
2 Hurricane 8
3 Severe Storms 8
4 Snow 7
5 Biological 2

Source: Federal Emergency Management Agency (FEMA)

How much is homeowners insurance in Maryland?

The average cost of homeowners insurance in Maryland is $1,212 per year.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is Maryland a safe state?

2019 Crime in Maryland Crime Number Crime Rate*
Property Crime 117,901 1,950.2
Burglary 16,86 278.9
Larceny-Theft 89,780 1,485.0

*Rate per 100,000 inhabitants

Safest Cities in Maryland by Property Crime*

  • Ocean Pines, MD has a population of 12,264 with a Property Crime rate of 5.9 per 1k. The city average home value is approximately $273,659.
  • Havre de Grace, MD has a population of 13,890 with a Property Crime rate of 11.9 per 1k. The average home value there is about $298,851.
  • New Carrollton, MD came in third as the safest city in the state of Maryland and has a population of 13,036 with a Property Crime rate of 12.7 per 1k. Its home value averaged at about $332,892.
  • Bowie, MD has a population of 59,093 with a Property Crime rate of 15.2 per 1k. Its average home value is $389,253.
  • Bel Air, MD has a population of 10,031 with a Property Crime rate of 17.4 per 1k. The city home value averaged $354,165

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in Maryland

Top homeowners insurance companies in Maryland

Penn National is known for affordable premiums. They offer a wide variety of home insurance coverages and many discounts. Discounts added to low premiums means good savings for customers. Discounts from Penn National include a claim-free discount, a new homebuyer discount, a 55+ discount and a protective device discount.

USAA prides itself on its service to members and for its competitive pricing for home insurance. USAA will cover the complete cost of replacing your house if it should be destroyed or damaged. USAA and all the USAA insurance products are only available to U.S. military service members and their families. Discounts from USAA include a 10 percent discount for taking out an auto insurance policy and a 10 percent discount for having no claims.

State Farm has a strong and interactive website and speedy claims payments. Discounts from State Farm include a burglar and fire alarm discount, a multi-policy discount and a high deductible discount.

Maryland Home Insurance FAQs

How do insurance companies pay contractors?

Some insurance companies pay contractors directly. For this to happen, a contractor may ask you to sign a “direction to pay” form that allows the insurance company to pay the contractor directly. In other instances, the insurance company pays you a claims payment and you use the money to pay the contractor for the work being done on your house.

Is loss of use covered by homeowners insurance?

Yes, loss of use coverage, also known as additional living expenses insurance, is covered in your homeowners insurance. If your home is damaged in a covered loss, loss of use coverage pays for additional housing and living expenses while your house is being repaired.

Does homeowners insurance cover foundation repairs?

Some foundation repairs are covered by homeowners insurance and some are not. It all comes down to the cause of the damage. If a tornado damages your home, homeowners insurance would help pay for foundation repairs. Foundation damage also may be covered if the cause of the damage is due to plumbing backups, fires and explosions. Foundation damage would not be covered if damage was due to a flood or earthquake or from wear and tear on the foundation.

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