How much is homeowners insurance in Maryland?
Several factors influence home insurance prices, including your location, previous claims history, and the type of home insurance policy you select.
How your policy choices affect home insurance rates in Maryland
Here, you’ll see how the choices you make on several key components of your coverage can affect your premiums.
Your policy form
Several types of homeowners insurance policies exist, but the most common is HO-3. An HO-3 protects against damage to the structure of your home and your personal belongings, and it also provides liability coverage.
Different home insurance policies cover different perils. Perils are events that lead to damage to your property or personal belongings. Many perils are related to natural disasters or circumstances outside of your control, such as wind, hail, tornadoes, hurricanes, fires, lightning, vandalism, theft, and falling objects.
Each type of home insurance policy covers perils differently, and this will influence your insurance rate. HO-3 policies cover a broad range of at least 16 different perils but exclude flood damage. HO-2 policies have more coverage limits than HO-3, and HO-5 policies are more expensive but cover all perils except those specifically excluded in your policy.
Before you purchase a home insurance policy, always check your perils to confirm what your policy does and doesn’t cover.
Learn More: Understanding the 8 Types of Homeowners Insurance
Your coverage level
When you choose a higher coverage level, you will usually pay a higher insurance premium. That’s why knowing the value of your home is a good starting point when trying to determine how much coverage you need.
Some insurance companies pay out claims based on your home’s actual cash value, which deducts the depreciation of your home. Other companies base the payment on your home’s replacement cost, which doesn’t consider depreciation when factoring in the cost to rebuild or replace your home.
A policy that pays claims based on replacement cost value may cost more, but it will generally provide more coverage.
Your deductible is the amount of money you’re expected to pay before your insurance coverage kicks in. When you file a claim, you have to pay your deductible before you receive any insurance support. Having a higher deductible could lower your insurance premiums, but it also means you’d need to pay more out of pocket when you file a claim. That’s why it’s important to never set a deductible so high you can’t pay it if the need arises.
How location affects home insurance rates in Maryland
Different states can have different insurance prices. The same is true for different ZIP codes within a single state. Some location-related factors that can influence home insurance quotes include weather events in the area, the rate of theft and vandalism within a community, and even a home’s distance from the local fire station.
The table below shows the average cost of home insurance in several Maryland cities.
|Average Monthly Quote
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.