Average Costs and Cheapest Homeowners Insurance Companies in Maryland

MoneyGeek analyzed thousands of quotes in Maryland to calculate average rates and find the cheapest company for you. While Travelers is the overall best pick for most homeowners in the state, State Farm offers the cheapest policy for owners of expensive homes in Maryland.

If you’re looking to balance affordability with a strong service experience, MoneyGeek also scored the best home insurance companies in Maryland.

After analyzing thousands of quotes from different home insurers across varying dwelling coverage limits, MoneyGeek identified the most affordable homeowners insurance in Maryland. As per the findings, the winner is Travelers which provides a home insurance policy in the state at a price of around $1,229 per year for the baseline dwelling coverage limit of $250,000.

For other dwelling coverage limits, the cheapest insurers in Maryland are as follows.

• Cheapest for $100,000 - Chubb
• Cheapest for $250,000 - Travelers
• Cheapest for $500,000 - Travelers

To determine how much dwelling coverage you need, you should estimate the replacement cost of your home. If you want to check the average policy costs for different dwelling coverages, you can toggle the table below.

Depending on the dwelling coverage amount you choose, the premiums for your home insurance policy will vary. Dwelling coverage is one of the most pivotal factors in determining home insurance premiums.

The dwelling coverage will increase when the replacement cost of your home increases. Replacement cost of a home increases with the age of the home, area, facilities and others. In Maryland, $250,000 is the baseline dwelling coverage limit. The average cost of home insurance for this dwelling coverage limit in the state is $1,671 per year. Meanwhile, dwelling coverage of $100,000 will cost an average of $895 and coverage of $3 million averages $18,435 annually.

Factors related to your region and your individual circumstances can affect your homeowners insurance cost. Providers estimate homeowners insurance in Maryland based on several factors, including your property’s dwelling value, roof quality, age, location and more.

You can check the average cost of homeowners insurance in Maryland based on dwelling coverage limits, deductibles and other factors based on your particular needs.

To find the cheapest homeowners insurance in Maryland, we evaluated thousands of quotes for different dwelling coverage limits from various insurance providers.

As per our findings, the most affordable home insurance companies in Maryland for expensive homes with $2 million in dwelling coverage are:

• State Farm: $8,261 per year
• Travelers: $9,129 per year

USAA is the cheapest for homeowners insurance in Maryland. However, we have not included it in the list because it offers its policies only to military families.

If you own an expensive home, you need to keep in mind that as the dwelling coverage limit goes up, the cost of insurance also increases. It is always advisable to shop around and compare quotes from different home insurers in Maryland to choose the best insurance policy for your needs.

New homes have lower replacement costs, less maintenance and lesser risk factors, thus the cost of insuring new homes is almost always lower than insuring an older home. We developed a sample homeowner profile in Maryland who needs dwelling coverage of $250,000 for the house he built in 2015. For this sample homeowner, the cheapest homeowners insurers in Maryland are:

• Travelers: $955 per year
• Allstate: $984 per year

The age of a home is pivotal in determining the insurance premium. If your home was built in 2000, the average difference in the insurance premium compared to a home built in 2015 would be $404 per year.

The numbers for these homes built in 2000 differ from those in the first section due to a different ZIP code collection process.

If your home was built in 2000, the average cost of insurance would be $1,728 per year for dwelling coverage of $250,000. For a home built in 2015, the insurance cost would be around $1,324 per year. The reason for the higher insurance cost for older homes is the use of older materials and the effects of wear and tear over the years.

As the materials used in building the home become less resistant to weather, risk factors increase for incidents such as water pipe bursting, short circuits, electrical issues and others. Thus, insurers charge a higher premium for older homes.

A pool requires extra maintenance and extra space. Therefore, the replacement cost is higher, increasing the cost of insuring the home. If you are looking for the cheapest insurer who offers a home insurance policy in Maryland for homes with a pool, your best options are:

• Travelers: $1,392 per year
• Chubb: $1,446 per year

While some insurers in Maryland account for the presence of a pool within the dwelling coverage limit, many insurers ask you to buy additional coverage for the pool.

Thankfully, in Maryland, owning a pool doesn’t have a significant impact on the overall cost of insurance, as it can in some states. The average cost of insuring a home with a pool in this state is only $14 higher per year than insuring a home without one.

For people with poor credit scores, home insurance can be more expensive. MoneyGeek evaluated different insurance companies to find the most affordable home insurance policy for people with poor credit history.

The two cheapest insurers for homeowners with a poor credit background in Maryland are:

• Travelers: $1,229 per year
• Erie: $1,324 per year

Insurers use bad credit scores as a risk factor for homeowners because they view the homeowner as being less likely to make on-time payments or keep up with maintenance needs.

The cost of insuring your home can vary based on your credit score. A homeowner in Maryland with excellent credit has to pay an average of $1,644 per year, while a person with a poor credit score has to pay around $1,922 per year, a difference of $232.

The cost of homeowners insurance and the cheapest company for you can vary based on where you live within Maryland. MoneyGeek found that Travelers is the cheapest home insurance company in Baltimore, with average premiums $442 per year cheaper than the city’s average rates across all companies for a dwelling coverage limit of $250,000.

To obtain home insurance quotes in Maryland, you need to provide the required information to your carrier. These details include your home’s age, current condition, market value, estimated cost to reconstruct it, location, proximity to a fire department, whether you have a mortgage and others. Discuss the amount of coverage you need and the costs. To get an accurate policy for your requirements, you should compare customized quotes from several providers.

Using MoneyGeek’s Maryland home insurance calculator, you can get an anonymous quote for your insurance policy. Our calculator compiles thousands of quotes across different insurers.

MoneyGeek analyzed homeowners insurance premiums from 10 of the top insurance companies in Maryland that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Maryland. Quotes were gathered with an average home profile of 2,500 square feet, built in 2000, with an average dwelling coverage value of $250,000, liability coverage of $100,000 and personal property coverage of $100,000.