Key Takeaways
- Travelers has the cheapest homeowners insurance rates in Maryland. The next-best rates are available from State Farm and Erie.
- The average cost of homeowners insurance in Maryland is 36% lower than the national average. However, rates in Baltimore are significantly higher than they are in most other Maryland cities.
- Flood damage is not covered by standard homeowners insurance, but Maryland has the nation’s cheapest flood insurance rates.
In this article
Cheapest homeowners insurance companies in Maryland
Travelers offers the cheapest homeowners insurance in Maryland, charging rates averaging $914 a year statewide for a typical single-family home. The next-best rates are available from State Farm, $979 a year, and Erie, $1,185 a year.
Since most home insurance providers’ rates vary by customer, it’s best to compare quotes from multiple companies when you shop.
| Company | Annual rate | Monthly rate |
|---|---|---|
| Travelers | $914 | $76 |
| State Farm | $979 | $82 |
| Erie | $1,185 | $99 |
| State average | $1,226 | $102 |
| Nationwide | $1,327 | $111 |
| Allstate | $1,337 | $111 |
| Chubb | $1,566 | $131 |
| USAA* | $1,277 | $106 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families. | ||
Find cheap homeowners insurance in Maryland
How much is home insurance in Maryland?
The average cost of homeowners insurance in Maryland is $1,226 a year, which is 36% less than the national average of $1,902 a year.
Insurance companies evaluate several factors about your and your home to determine your rate. The most significant include:
- Your home’s age, location and construction features
- Your insurance claims history
- Any discounts you may be eligible to receive
- Your deductibles and the amount of coverage you choose
Home insurance rates by deductible
Selecting a higher deductible is an easy way to save money on homeowners insurance.
In Maryland, increasing your deductible from $500 to $2,000 can shave an average of $281 a year, or $23 a month, off your annual insurance bill.
Since your deductible is the amount of money that comes out of your pocket to cover damage to your home or belongings, you don’t want it to be too high. However, if you choose an amount that reflects the most you’d be able to afford in the aftermath of a disaster, you can save on premiums.
| Deductible | Annual rate |
|---|---|
| $500 | $1,335 |
| $1,000 | $1,226 |
| $1,500 | $1,146 |
| $2,000 | $1,054 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Home insurance rates by coverage amount
Your dwelling coverage limit, which is the maximum amount your insurance company pays to repair or rebuild your home, has a significant impact on your homeowners insurance rate.
For example, a Maryland homeowners insurance policy with a $350,000 dwelling limit costs an average of 20% more than one with a $275,000 dwelling limit.
Unfortunately, you don’t have as much latitude with your dwelling limit as you do with your deductible. If you have a mortgage, your lender is likely to require you to insure your home at its replacement cost value. That is the estimated cost of rebuilding it from the ground up.
You can insure your home at a lower amount if you have a low loan balance or own the home outright, but doing so is rarely advised. Insuring your home at its replacement value provides enough money to rebuild in the event a covered peril such as a fire destroys your home.
Most insurance companies use software to estimate your home’s replacement value. These estimates are based on your home’s specifications, building materials, quality grade and the age of your plumbing, heating and electrical systems.
Providing your insurance company with accurate information about your home is the best way to make sure your dwelling limit is not too high or too low. If you disagree with your insurance company’s valuation of your home, ask your agent how the company came up with its estimate and correct any errors in their methodology.
| Dwelling limit | Annual rate |
|---|---|
| $200,000 | $990 |
| $275,000 | $1,226 |
| $350,000 | $1,473 |
| $425,000 | $1,748 |
| $500,000 | $2,039 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Maryland’s best homeowners insurance companies
While a low price is important, you also want your homeowners insurance company to provide the right amount of coverage and responsive customer service.
Based on a combination of price, coverage and customer-service ratings, Travelers, Erie and State Farm rise to the top as Maryland’s best insurance companies.
Travelers: Best for saving money
$914 a year
Travelers rates in Maryland are 25% lower than the state average.
Pros
A++ rating for financial strength from AM Best.
NAIC Complaint Index rating of 0.17 is second best in the state.
Bundling home and auto insurance allows you to save up to 15% more.
Travelers satisfaction rating of 794 from J.D. Power is below the segment average and lowest among the companies in our analysis.
Erie: Best policy options
$1,185 a year
Erie’s guaranteed replacement cost protection for your home ensures enough coverage to rebuild after a total loss. Erie also offers a couple of different coverage options for water damage.
Pros
AM Best rating of A+ for financial strength.
NAIC Complaint Index rating of 0.26 is third best in the state.
J.D. Power’s satisfaction index rating of 827 beats the segment average.
Extended water damage endorsement covers sewer and drainage backups and basement flooding.
Private flood insurance available as an alternative to government-backed policies.
Other companies in our analysis have lower rates.
State Farm: Best for customer satisfaction
$979 a year
State Farm’s score of 829 in J.D. Power’s overall customer satisfaction index rankings is highest among Maryland home insurance companies available to the general public.
Pros
Second-cheapest average home insurance rates in Maryland.
A++ rating for financial strength from AM Best.
Generous discounts for bundling home and auto insurance.
State Farm’s NAIC 0.35 Complaint Index rating is worse than other Maryland companies with comparable rates.
Customer service ratings for Maryland home insurance companies
USAA has the highest overall rating in J.D. Power’s customer satisfaction rankings among the Maryland companies in our analysis. Chubb has the lowest, or best, rating on the Complaint Index provided by the National Association of Insurance Commissioners (NAIC).
J.D. Power’s overall customer satisfaction index rankings are based on customer surveys rating insurance companies on factors such as policy offerings, price and claims.
USAA’s satisfaction rating of 884 tops all home insurance companies in Maryland. However, USAA is only available to current and former members of the military and their families.
| Company | Satisfaction score |
|---|---|
| USAA* | 884 |
| State Farm | 829 |
| Erie | 827 |
| Segment average | 819 |
| Nationwide | 816 |
| Allstate | 815 |
| Chubb | 809 |
| Travelers | 794 |
| Source: J.D. Power 2022 U.S. Home Insurance Study. *Only available to current/former military and their families. | |
The NAIC Complaint Index compares insurance companies by confirmed complaints, which are complaints that lead to a finding of fault. A company with a 2.0 Complaint Index rating has twice as many confirmed complaints as expected for its size, while one with a 0.5 rating has half as many.
Chubb, which specializes in high-value homes, has the lowest, or best, Complaint Index rating, 0.14. This is only slightly better than Travelers’ rating of 0.17. Both companies have less than one-fifth as many complaints as expected for their respective sizes.
| Company | Complaint rating |
|---|---|
| Chubb | 0.14 |
| Travelers | 0.17 |
| Erie | 0.26 |
| USAA* | 0.31 |
| State Farm | 0.35 |
| Nationwide | 0.54 |
| Allstate | 0.62 |
| Source: NAIC, 2022 data. *Only available to current/former military and their families. | |
Maryland home insurance rates by city
In Maryland’s largest cities, the price of homeowners insurance ranges from $921 a year in Frederick to $1,518 a year in Baltimore.
The average cost of home insurance in Baltimore is 24% higher than the state average.
| City | Annual rate |
|---|---|
| Baltimore | $1,518 |
| Columbia | $970 |
| Ellicott City | $1,008 |
| Frederick | $921 |
| Gaithersburg | $1,025 |
| Germantown | $1,017 |
| Glen Burnie | $1,158 |
| Rockville | $970 |
| Silver Spring | $987 |
| Waldorf | $1,269 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Maryland home insurance rates by county
Among Maryland’s largest counties, home insurance rates range from $942 a year in Frederick County to $1,291 a year in Charles County.
| County | Annual rate |
|---|---|
| Anne Arundel County | $1,156 |
| Carroll County | $976 |
| Charles County | $1,291 |
| Frederick County | $942 |
| Harford County | $1,254 |
| Howard County | $992 |
| Montgomery County | $991 |
| Prince George's County | $1,283 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
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Does Maryland home insurance cover tornadoes and floods?
Along with normal risks like fires, Maryland homeowners face risks from tornadoes and floods. Home insurance covers tornadoes, but not floods.
How home insurance covers tornadoes
Maryland experiences several tornadoes each year, according to the state’s Department of Emergency Management.
Fortunately, most Maryland homeowners insurance policies cover damage from extreme wind, including tornadoes. Due to the rapid and destructive nature of tornadoes, it’s particularly important to create and maintain a home inventory of your possessions in Maryland.
Your home inventory should include an itemized list of your belongings, accompanied by receipts, photos and other relevant documentation.
If a tornado or any other peril damages or destroys your home, a detailed home inventory can help expedite your claim.
Flood insurance in Maryland
Although standard homeowners insurance does not cover floods, you can buy flood insurance separately.
Most flood insurance is bought through the government-backed National Flood Insurance Program (NFIP), but a few private companies also offer it.
Among all states, Maryland has the cheapest NFIP flood insurance rates in the nation, $489 a month, or $41 a year. However, homeowners in Maryland’s high-risk flood zones pay more for flood insurance than those in lower-risk areas.
If you have a mortgage for a home in a high-risk flood zone, your lender is likely to require flood insurance. Flood insurance is also available on an optional basis if you don’t have a mortgage or live in a low- or moderate-risk area.
If you’re not sure of your home’s flood risk, or the flood risk for a home you want to buy, you can find it online in the Federal Emergency Management Agency’s Flood Map Service Center.
Most home insurance companies can provide an NFIP and/or private flood insurance quote as well as a normal home insurance quote.
Maryland home insurance: frequently asked questions
The average price of homeowners insurance in Maryland is $1,226 a year, or $102 a month.
Travelers offers the cheapest homeowners insurance in Maryland, charging rates that average $914 a year, or $76 a month, statewide.
The best ways to save money on homeowners insurance include choosing a high deductible and bundling your homeowners policy with your car insurance. It’s also good to compare quotes from multiple companies every few years, or anytime you feel you are being overcharged, to see if you can get a better deal.
Methodology
The rates shown in this article are based on an analysis of quotes provided by Quadrant Information Services for a typical home in every Maryland ZIP code. Unless otherwise noted, prices reflect quoted rates for a standard HO-3 policy with the following coverages, limits and deductible:
- Dwelling: $275,000
- Other structures: $27,500
- Personal property: $137,500
- Loss of use: $55,000
- Liability: $100,000
- Medical payments: $5,000
- Deductible: $1,000
Home insurance by city
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