Average homeowners insurance cost in Frederick, Maryland

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The typical homeowners insurance premium in Frederick comes out to $1,701 per year for $300,000 in dwelling coverage, $100,000 in liability, and a $1,000 deductible – $874 less than the national average of $2,575. If you’re looking for the lowest rate, Travelers is the most affordable option in Frederick, averaging $1,037 per year.

That figure, however, is just a starting point. Premiums in Frederick can differ by hundreds and thousands of dollars between two homes on the same block, based on factors like:

Size of your home
Age of your home
Amount of coverage you need
Location
Your credit score

Ways to lower your home insurance in Frederick

Compare 3+ quotes before every renewal – different companies offer the same coverage at different prices
Raise your deductible from $1,000 to $2,500 to save 10% to 15%
Bundle home and auto for a 10% to 25% multi-policy discount
Ask about discounts for security systems, smart-home devices, and claims-free history
Improve your credit in states where insurers use it

Average homeowners insurance cost per month in Frederick

The average monthly premium for homeowners in Frederick is $142 – $17 more than the state average of $159 and $73 less than the national average.

Getting quotes from several insurers is one of the most reliable ways to bring that number down.

A quick look at homeowners insurance costs in Frederick

Homeowners insurance in Frederick averages $1,701 annually, but the spread between providers and coverage levels means your actual premium could look quite different. Finding the right balance of coverage and cost starts with understanding your options.

Homeowners insurance costs $1,701 per year in Frederick
At $1,037 per year, Travelers offers the cheapest homeowners insurance in Frederick
Your home insurance rates increase by $379 more annually if you increase your dwelling coverage from $200,000 to $300,000

Average homeowners insurance cost for a $200,000 house in Frederick

Homeowners insurance for a $200,000 dwelling in Frederick costs an average of $1,322 per year. Rates can vary depending on local risks, such as natural disasters, which may increase rebuilding costs and insurance premiums.

Standard homeowners insurance policies usually exclude flood and hurricane damage because those events can cause widespread, costly losses across entire regions at the same time. Homeowners in high-risk areas may need separate flood or windstorm coverage to fully protect their property.

It’s also important to make sure your coverage limit is high enough to rebuild your home at current construction costs, not just its market value. That’s why it helps to shop around for quotes, review your coverage regularly, and use any discounts available to keep costs under control.

A quick look at homeowners insurance costs in Frederick

Home insurance in Frederick averages around $1,701 per year, but what you actually pay depends on the coverage level you choose and which insurer you go with. Shopping around and selecting the right limits can make a meaningful difference in your annual cost.

Homeowners insurance costs $1,701 per year in Frederick
At $1,037 per year, Travelers offers the cheapest homeowners insurance in Frederick
Your home insurance rates increase by $379 more annually if you increase your dwelling coverage from $200,000 to $300,000

Average homeowners insurance cost for a $300,000 house in Frederick

Insuring a $300,000 home in Frederick costs an average of $1,701 per year. Increasing coverage from $200,000 to $300,000 raises premiums by about $379 annually.

Higher coverage limits increase premiums because the insurer may need to pay more to rebuild your home after a major loss. If you choose to increase your coverage, it can be a smart financial decision since paying a little more now may help protect you from much larger out-of-pocket costs after a serious claim.

People also ask:

How much dwelling coverage do you need for your home?

Your dwelling coverage should be enough to fully rebuild your home at today’s construction prices – which is often different from what the home would sell for on the market. According to the Insurance Information Institute (III), a nonprofit organization that provides data and insights on the insurance industry, most policies cover personal belongings at roughly 50% to 70% of the dwelling coverage amount. To find the right number, factor in your home’s size, the materials it’s built with, and local labor costs in Frederick.

Is $300,000 enough homeowners insurance coverage?

It depends on what it would cost to rebuild your specific home in Frederick. In areas with higher construction costs, $300,000 may not stretch far enough. Compare your coverage to rebuilding costs, not your home’s market value.

Average homeowners insurance cost in Frederick by company

Travelers offers the cheapest homeowners insurance in Frederick at an average of $1,037 per year. State Farm and Erie Insurance are also among the most affordable providers in the area.

Comparing multiple insurers is essential, as rates and coverage options vary widely between companies.

Home insurance company	Annual rate
Travelers	$1,037
State Farm	$1,169
Erie Insurance	$1,666
American Family	$1,712
Allstate	$2,044
Chubb	$2,358
Nationwide	$2,373
USAA*	$1,474

*USAA is only available to military community members and their families.

What factors affect homeowners insurance rates in Frederick?

Insurance companies price your policy based on how likely you are to file a claim and how expensive that claim would be. That calculation pulls from your home’s physical characteristics, your location, your coverage choices, and even your financial history.

Here’s how the biggest factors actually move your rate:

Size of your home. Bigger homes cost more to rebuild, and rebuild cost is what your dwelling coverage has to pay for. A 3,500-square-foot home will almost always cost more to insure than a 1,500-square-foot one on the same street. Insurers calculate this using square footage, construction materials, and local labor rates – not your home’s market value.
Age of your home. Older homes typically cost more to insure because of higher-risk systems like knob-and-tube wiring, galvanized plumbing, and aging roofs. A home built in 1925 with original electrical can cost 20% to 40% more to insure than a comparable new build. Recent updates to the roof, electrical, or plumbing can offset this – but you have to tell your insurer about them.
Amount of coverage you need. Higher dwelling and liability limits mean higher premiums, but your deductible is where you have the most control. Raising it from $1,000 to $2,500 typically saves 10% to 15%; going from $1,000 to $5,000 can save more than 20%. Just don’t pick a deductible you couldn’t actually afford tomorrow.
Location. Two identical homes a few miles apart can have very different rates. Insurers look at your ZIP code’s history of weather damage (hail, wind, flooding), wildfire risk, crime rates, and even how far you are from the nearest fire hydrant or fire station. Homes more than 5 miles from a fire station often pay noticeably more.
Your credit score. In most states, insurers use a credit-based insurance score to predict claim likelihood. Homeowners with poor credit can pay 50% or more than those with excellent credit for the same coverage. Three states – California, Maryland, and Massachusetts – ban this practice for homeowners insurance.
Claims history. Your past claims matter, even if they were on a different home. Filing two or more claims in the past 5-7 years can raise your rate or make it harder to find coverage. Some insurers also pull the CLUE report (Comprehensive Loss Underwriting Exchange) on your address – meaning the previous owner’s claims can affect your rate too.

Frequently asked questions

Is homeowners insurance required in Frederick?

No law in Frederick mandates homeowners insurance, but nearly all mortgage lenders will require it before approving your loan. If you’ve paid off your mortgage, you’re technically free to skip it, but doing so leaves you fully exposed. A major loss from fire, wind, or another covered event could easily cost over $100,000, all of which would come out of your own pocket.

How much coverage do I need for my home?

The right amount of dwelling coverage is whatever it would take to rebuild your home completely if it were destroyed, from the foundation up. That figure depends on your home’s size, its construction materials, and local labor and material costs. It won’t necessarily match your home’s market value. Getting a replacement cost estimate is a smart first step, and reviewing it every few years can help make sure your coverage keeps up with rising construction costs.

What does homeowners insurance not cover?

Most standard policies leave out flood and earthquake damage, two perils that can cause enormous losses but are typically handled through separate policies. Other common exclusions are gradual wear and tear, pest infestations, and sewer backups, though endorsements exist to add some of these. Understanding your policy’s exclusions before you need to file a claim can save you from a costly surprise.

Methodology

In 2025, Insure.com, with the help of Quadrant Information Services, gathered data for homeowners insurance rates in Frederick for $300,000 dwelling coverage, $100,000 liability coverage with a $1,000 deductible. The data presented are those with a good credit tier alignment.

Sources

Insurance Information Institute. How much homeowners insurance do you need? Accessed May 2025.

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Alisha Ambre

Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.