Homeowners Insurance in Maryland

What factors influence my home insurance rate?

Answering, ”How much is home insurance in Maryland?” is important, but it won’t tell you how much you’ll personally pay for coverage. That’s because while a state’s average home insurance premiums may ebb and flow, your own premiums will largely be dictated by certain personal factors as well as details about your home. 

As far as your home is concerned, these relevant details include things like:

• Your home’s location
• The age of your home
• How your home was built and the materials used
• The current condition of your home
• Your square footage
• The number of rooms in your home
• Any non-standard details (like tall ceilings and doors, high-end fixtures, etc.)
• Any updates or renovations you’ve made
• Average labor rates and the cost of materials in your area
• Select structures and features, like a pool, deck, gazebo, or shed

Insurance companies will use these factors to determine how much it would likely cost to rebuild your home following a total loss. This is important, as rebuilding your house from the ground up with homeowners insurance in Baltimore, MD, would probably be at a different cost than if you’re in, say, Leonardtown, MD.

Then, carriers will look at how much coverage you want and how you want your policy to function when calculating rates. This means looking at:

• What type of homeowners insurance policy you want
• How much coverage you choose to buy
• The deductible you choose
• Whether or not you add certain endorsements (riders) to the policy, such as mold coverage, earthquake insurance, or water backup coverage.

Lastly, your premiums will be influenced by certain factors that are personal to you, the insured, and the other individuals living on your property.

• Who lives in the home
• Whether you have any added risk factors — a trampoline, pool (with or without a fence), certain dog breeds, if you manage a business in your home, etc.
• How many claims you’ve made in recent years
• Your credit and insurance score

These individual factors will be considered and used to calculate the premiums for your Maryland homeowners insurance policy.

Common insurance discounts in Maryland

One way you can pay less for your home insurance in Maryland is to qualify for certain discounts. Available discounts will vary from one insurance company to the next but can save you tens, if not hundreds, of dollars per year on your premiums. 

Some common insurance discounts in Maryland may include:

• Bundle discounts for owning more than one policy with the same carrier
• Loyalty discounts if you’ve been with the same carrier for multiple years
• Safety discounts if you live in a gated community or near a fire station
• Smart home discounts if you have smart sensors, a security system, fire sprinklers, etc. installed
• Good claims history discounts if you haven’t filed a property claim in recent years
• New home discounts if your property is brand new or less than two to five years old
• Roof-related discounts if your home’s roof has been recently replaced or is made of fire-resistant materials
• Affiliation discounts for military and first responders or those who are members of organizations like AAA, certain colleges, and more
• Prepay discounts for paying your entire premium upfront at the start of the policy (instead of in monthly installments)
• Autopay discounts for setting up automatic recurring monthly payments
• Paperless discounts for signing up for paperless billing and statements

Be sure to check with carriers to see which discounts are available and how you can qualify to save on your premiums.

Tips for lowering home insurance rates

In addition to qualifying for certain Maryland homeowners insurance discounts, there are a few other ways to save money and lower your insurance premiums. Some of our top tips include the following:

• Raise your deductible. Your deductible is the portion of a covered loss you will need to pay before your carrier steps in to cover the rest (up to your policy’s coverage limits). The higher your deductible, the more risk you’re willing to take on upfront… which can often mean lower premiums for coverage.
• Adjust your coverage. While it’s important to adequately protect your home against damage and loss, there is such a thing as being over-insured. Be sure to look over your policy’s coverage to see where you can make adjustments without leaving your home unprotected.
• Make updates and/or repairs. If your home has outdated electrical wiring, old plumbing pipes, or a shoddy roof, you might be paying more for your insurance coverage. By making repairs and updates (which will also make your home safer and more secure), you can often lower your insurance premiums and even qualify for certain discounts.
• Improve your credit. Your credit score and payment history can’t preclude you from buying homeowners insurance coverage, but they can affect your premiums. If you have a low score — either due to high levels of debt, late payments, or defaults — you can be viewed as a more risky customer to insurance companies, which may bump your policy price.
• Beef up your home’s protection features. The safer your home is, the less likely you are to experience a catastrophic loss. Not all risks are within your control, of course, but carriers often offer discounted pricing on homes with features like security systems, smart home alarms, fire sprinklers, and more. By adding these to your home, you may unlock lower premiums.
• Shop around. It’s always smart to shop around before choosing any insurance policy by getting multiple home insurance quotes. Maryland homeowners can then compare these options, research carriers, and determine who offers the best coverage at the right price. Hippo can help you get multiple quotes in just 60 seconds online, making this step faster and easier than ever.

What does Maryland home insurance cover?

The average homeowners insurance in Maryland usually offers some combination of dwelling coverage, personal belongings coverage, and personal liability insurance protection. This coverage kicks in if your home is damaged or destroyed by a covered peril, such as a fire, windstorm, lightning, or even an explosion.

• Dwelling coverage protects your home, meaning the building that makes up your house. This includes the walls, roof, exterior, floors, ceilings, and any permanent systems or fixtures like plumbing, electrical wiring, cabinets, HVAC, furnaces, gas lines, permanent appliances, and the like. It also includes attached structures like porches and patios, garages, awnings, etc.
• Other structures coverage extends your policy to fixtures on your property that aren’t attached to your dwelling but are still part of your home. This includes things like a shed, deck, pool, gazebo, fence, detached garage, and more.
• Personal belongings coverage is intended to cover your stuff — anything you would take with you when moving from one home to the next usually falls under this umbrella. Typically set up as a percentage of your home’s dwelling protection, this coverage will pay to replace things like clothes, furniture, personal electronics, jewelry (up to select limits), home furnishings, art, and more following a covered loss. 
• Personal liability coverage protects you from financial liability if someone else is injured on your property or as a result of actions from someone who lives in your home. If your neighbor slips in your entryway and breaks their back, for example, this coverage may help pay for things like medical bills, lost wages, and legal fees. 
• Displacement coverage to help pay for hotel stays, a rental home, laundry services, and even restaurant meals if you are unable to stay in your home due to a covered loss.

You should review each and every home policy carefully to see exactly what is and isn’t protected, as this can change from one carrier to the next and even between policies. Be sure to read the declarations page you’re given when buying your coverage to see your policy summary.

Additional Maryland insurance coverage options

Once you’ve reviewed your policy, you will likely notice that home insurance in Maryland doesn’t cover any and all potential losses. So, depending on the insurance company and policy you choose, there may be other options that you can add to better protect your home and yourself. 

When getting a homeowners insurance quote in Maryland, you may want to price out additional coverage options like:

• Extended replacement coverage
• Flood insurance
• Wildfire insurance
• Earthquake insurance
• Hurricane insurance
• Valuable personal property coverage
• Mold insurance
• Water backup and sewer insurance
• Service line coverage

What coverage is recommended in Maryland?

Here are the coverages you might want to consider whether you’re buying homeowners insurance in Baltimore or Hagerstown (or anywhere in between).

• Adequate dwelling coverage to protect your home’s structure from unexpected damage or loss.
• Personal belongings coverage to repair or replace your belongings if damaged in a covered event or even stolen. In some cases, your valuables may even be protected if they are stolen while you’re away from home, like if someone snatches your laptop while in a coffee shop.
• Personal liability protection in case someone else is injured or even dies on your property or due to actions taken by someone in your household. This coverage can help cover medical bills, lost wages, legal fees, and other related expenses. 

Maryland is a coastal state, albeit a northern one, and is no stranger to hurricanes. In recent years, Hurricanes Irene and Sandy have caused hundreds of millions of dollars in damages to the state, taking lives and homes with them. Most standard homeowners insurance policies exclude flooding and other damages related to hurricanes, so you might consider adding hurricane insurance for supplemental coverage.

Insuring your home in Maryland

Buying homeowners insurance in Maryland can be relatively simple, especially if you shop online. While each carrier is different, and your policy needs may vary, here’s a rundown of what it might look like when insuring your home.

1. Determine how much coverage you need. Your carrier will help you calculate how much insurance coverage is necessary to protect your home and how much it would likely cost to repair, replace, or even rebuild your home following a loss. However, knowing how much your belongings are worth and how much coverage you may need for other structures on your property can be valuable in this step.
2. Pick a policy type. There are many different types of home insurance coverage, depending on the kind of home you have and the coverage you want. Your policy terms will vary based on whether you own a single-family home, rent your property as a landlord, or even live in a shared building and need Maryland condo insurance.
3. Shop around for pricing. Getting multiple quotes for coverage helps you compare issuers and pick the policy that fits you best at the right price. You can even use a website like Hippo.com to get quotes from multiple top-rated carriers at once.
4. Adjust your coverage. Think you might need more protection for your home or personal belongings? Want to add coverage against floods, earthquakes, and other perils? Now is the time to make changes and truly personalize your policy.
5. Choose your deductible. Home insurance deductibles may be a set dollar amount or a percentage of your home’s insured value. The higher the deductible you choose, the more you’re responsible for following a loss… but often, this also means lower premiums for your coverage.

Once you’ve built the perfect policy, read over the documents carefully, compared issuers, and picked the right premiums, you can move forward with buying your coverage.

Is Maryland homeowners insurance required by law?

Home insurance coverage is not required by federal or state law in Maryland. But even though there are no Maryland homeowners insurance laws to consider, your mortgage lender may still require you to purchase a policy.

Mortgage lenders often mandate homeowners insurance coverage for the duration of your home loan repayment to protect their collateral assets. This can be paid directly or through escrow; if you allow your coverage to lapse, your lender may purchase force-placed insurance at your expense.