If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
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.
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:
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:
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:
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:
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 |
Here are a few things Maryland homeowners should know when shopping for home insurance in the state:
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.
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.
Here's a look at some of the most common Maryland home insurance claims:
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.
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.
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.
Here's a look at how some popular home insurance discounts can affect Maryland home insurance premiums:
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.
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 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.
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 |
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 |
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
