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The Best Cheap Maryland Homeowners Insurance for 2023

Kailey Hagen
By: Kailey Hagen

Our Insurance Expert

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Homeowners insurance is essential for homes large and small, but it often doesn't come cheap. Maryland home insurance falls slightly below the national average, but it can still cost thousands of dollars unless homeowners know where to look. Here are the companies that offer the best homeowners insurance in Maryland for several common scenarios.

  • Cheapest overall for Maryland: Brethren Mutual Insurance
  • Cheapest for new home construction: Farmers
  • Cheapest for older homes: Brethren Mutual Insurance
  • Cheapest for homeowners who have filed a claim: Brethren Mutual Insurance

Cheapest overall for Maryland

Brethren Mutual offers the best homeowners insurance in Maryland overall with an average annual premium of $562. That's well below the state average of $1,411.

Other companies that offer cheap homeowners insurance in Maryland include:

  • Penn National Insurance, where homeowners pay about $876 per year on average
  • Farmers, which charges homeowners about $899 annually for Maryland home insurance

Cheapest for new home construction

Farmers offers the lowest Maryland home insurance rates on new construction with an average annual premium of only $394. That's just over half the state's average of $778 per year.

These insurers are also some of the best homeowners insurance companies in Maryland for new construction:

  • Brethren Mutual Insurance, which has an average annual premium of $402 for new Maryland homes
  • Erie Insurance, which has an average annual Maryland home insurance premium of $469 for new homes

Cheapest for older homes

Older homes cost more to insure -- about $1,502 annually in Maryland. But Brethren Mutual Insurance will offer older homeowners the same coverage for one-third of the price. Its average annual premium for a 50-year-old home is just $503.

Older homeowners should also check out the following Maryland home insurance companies:

  • Farmers, where the average annual premium for older homes is $713
  • Penn National Insurance, which charges about $861 per year to insure an older Maryland home

Cheapest for homeowners who have filed a claim

Filing a claim raises the average Maryland home insurance premium to $1,540 per year. But those who choose Brethren Mutual pay a much more affordable $569 annually.

Homeowners with a claims history can also find affordable rates with these insurers:

  • Donegal Insurance Group, which charges these homeowners about $871 per year for Maryland home insurance
  • State Auto Insurance, which charges homeowners who have filed a single claim $956 annually

Average cost of homeowners insurance in Maryland compared to the national average

Maryland home insurance rates fall under the national average, especially for homeowners who have filed claims. Here's a look at how the state's rates stack up to the national averages for the categories discussed above.

Average Rate Category Maryland National Average
Overall $1,411 $1,725
New home construction $778 $943
Older homes $1,502 $1,658
When making a claim $1,540 $1,803
Data source: Quadrant data.

Maryland homeowners insurance overview

Here are a few things Maryland homeowners should know when shopping for home insurance in the state:

Home prices are above average in Maryland

The average Maryland home costs about $366,581, according to The Ascent's research on average home price by state. That's a little above the national average of $293,349.

This is significant because home cost plays a big role in home insurance rates. Larger homes with more expensive furnishings cost more to build and homeowners must buy more coverage to be fully protected. This leads to higher home insurance rates.

Homeowners with a home price tag well above the state average can expect to pay more for their home insurance. But a less expensive home isn't always a guarantee of cheaper premiums.

Other factors affect home insurance costs, including the homeowner's claims history and its location within the state. Homes in disaster-prone areas may cost more to insure, even if they fall below the state's average home insurance price.

Eastern Shore residents can expect higher rates

The Maryland cities with the highest average home insurance premiums (see the chart below) are all located in the Eastern Shore. Its proximity to the coast means this area is at a higher risk of storm damage than cities farther inland.

Eastern Shore residents can pay over $2,100 per year for coverage, which is considerably more than what homeowners in Baltimore pay. The average premium here is just $1,664 per year.

What are the most common homeowners insurance claims in Maryland?

Here's a look at some of the most common Maryland home insurance claims:

Hurricane damage

Like all coastal states, Maryland is at some risk of hurricanes. These have strong winds that can rip off roofs and bring trees and debris down on homes. In severe cases, they can destroy a home completely. This can result in costly home insurance claims.

Because of this, many home insurers now have a separate wind/hail deductible that's higher than the standard home insurance deductible. Homeowners hoping to file a wind or hail claim must first pay up to the wind/hail deductible before the insurance company will pay out.

Flood damage

Floods go hand in hand with hurricanes. The storm surge can quickly flood coastal areas, damaging foundations and destroying personal property.

Unfortunately, floods aren't covered under a traditional homeowners insurance policy. Homeowners who live in flood-prone areas will need to invest in a separate flood insurance policy to ensure they're fully protected.

Winter storm damage

Maryland also sees its share of winter storms, which can bring heavy snow that can collapse roofs. Cold temperatures can also cause pipes to freeze and burst, leading to water damage. In addition to taking steps to mitigate these disasters, homeowners should make sure they have adequate home insurance to protect them in the event of a loss.

Homeowners insurance coverage options and discounts in Maryland

Here's a look at how some popular home insurance discounts can affect Maryland home insurance premiums:

Bundling leads to big savings

Bundling home and auto insurance drops the average Maryland home insurance premium from $1,411 to $1,120. That's the single-biggest discount most companies offer, so it's definitely worth insuring home and auto through the same provider whenever possible.

A new roof is worth $200 in annual savings

Homeowners who recently replaced their roof should notify their home insurance provider immediately. Many companies offer a discount for this, and it drops the average home insurance premium in the state down to $1,208. It may also be a good idea for homeowners to shop around and see if there are other companies out there who are willing to give them an even bigger discount than their current insurer.

Sprinklers are a valuable investment in more ways than one

Sprinklers can reduce the damage done in the event of a fire, but they can also help homeowners shave close to $200 off their home insurance premiums. The average home with a sprinkler system pays just $1,242 per year. There is an upfront cost associated with installing a sprinkler system, but it will pay dividends for many years to come, so it's something to consider.

5 cheapest cities in Maryland for homeowners insurance

These five cities have the cheapest average annual Maryland home insurance premiums:

City Name Average Home Insurance Rate
Chevy Chase $1,111
North Bethesda $1,113
Clarksburg $1,118
Glen Echo $1,118
North Kensington $1,119
Data source: Quadrant data.

6 most expensive cities in Maryland for homeowners insurance

Homeowners in these six Maryland cities can expect to pay more than average for their home insurance premiums:

City Name Average Home Insurance Rate
Showell $2,232
Tylerton $2,222
Crocheron $2,160
Manokin $2,126
Rehobeth $2,125
Allen $2,125
Data source: Quadrant data.

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