Best and cheapest homeowners insurance companies in Maryland

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The average cost of homeowners insurance in Maryland is $1,918 per year, though what you actually pay can look very different from your neighbor’s bill. Insurers factor in everything from your home’s age and construction type to how close you live to fire stations, coastlines, or other potential hazards – which is why two similar houses on the same street can end up with noticeably different premiums.

If affordability is your top priority, State Farm offers the lowest average rates in Maryland. But the cheapest policy isn’t always the right one. Factors like financial strength, customer satisfaction and third-party ratings all matter when choosing the best coverage for your home.

How to find the right policy in 3 steps

Estimate your coverage needs. Aim for enough dwelling coverage to fully rebuild your home at today’s construction prices.
Compare at least three quotes using identical coverage limits and deductibles – rates for the same policy can vary by hundreds of dollars.
Look beyond price. Check financial strength ratings (AM Best) and customer satisfaction scores (J.D. Power) before committing to the cheapest option.

Our choice: Compare the best homeowners insurance companies in Maryland

When purchasing insurance in Maryland, it’s important to compare providers. The right insurance company for someone else might be the wrong insurer for you.

Here are our picks for the top insurance companies in Maryland.

Company group	Annual premium	AM Best rating	NAIC rating	Overall rating (out of 5)
Chubb	$2,350	A++	0.07	4.77
Travelers	$1,442	A++	0.91	4.48
Erie Insurance	$1,862	A	0.46	4.44
State Farm	$1,318	A+	1.15	4.28
Allstate	$1,971	A+	1.26	4.15
American Family	$2,158	A	1.07	4.12
Nationwide	$2,558	A	1.34	3.94
USAA*	$1,779	A++	0.46	4.65

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

What are the cheapest homeowners insurance companies in Maryland?

State Farm has the lowest homeowners insurance rates in Maryland, averaging $110 per month or $1,318 per year.

Keep in mind that rates vary by insurer based on local factors like climate risk, claims history, and building costs. Comparing quotes from multiple insurers is the surest way to find the best rate for your home.

Company group	Annual premium	Monthly premium
State Farm	$1,318	$110
Travelers	$1,442	$120
Erie Insurance	$1,862	$155
Allstate	$1,971	$164
American Family	$2,158	$180
Chubb	$2,350	$196
Nationwide	$2,558	$213
USAA*	$1,779	$148

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

Home insurance rates can vary by hundreds – even thousands – between insurers

Even within the same state, premiums can swing by hundreds of dollars based on factors you might not think about, including:

Your exact ZIP code, local claim history, and proximity to the coast, wildfire zones, or areas prone to severe weather
Your home’s age, size, roof type, construction materials, and the overall risk your property carries
Distance to the nearest fire station or fire hydrant
Your credit-based insurance score
Whether you’ve filed claims in the past five to seven years

How much does homeowners insurance cost in Maryland?

The average homeowners insurance cost in Maryland is $1,918. That’s $625 lower than the national average of $2,543.

Averages only tell part of the story. What you’ll actually pay depends on details specific to your home and situation, including your ZIP code, home value, roof condition, and coverage choices.

Annual premium	Monthly premium	Difference compared to national avg.
$1,918	$160	$625 less

People also asked: Is homeowners insurance required in Maryland?

Maryland doesn’t legally require homeowners insurance, but if you have a mortgage, your lender will almost always require coverage equal to your home’s replacement cost so the property can be fully rebuilt after a total loss. Standard policies include dwelling, liability, and personal property coverage, though limits and add-ons vary by insurer.

Estimate your costs and compare homeowners insurance quotes in Maryland

The calculator below can help you estimate what homeowners insurance might cost in your state. Adjust your dwelling coverage, liability limits and deductible to see how those choices influence your average annual rate alongside the lowest and highest rates available in your area.

Keep in mind that your actual quote will reflect details unique to your property, including its age, construction type, claims history and exact location within the state. Treat the calculator as an initial guide and follow up by comparing quotes from at least three insurers to find your true lowest rate.

Homeowners insurance rates by state calculator

See how the average annual home insurance rates vary with the options chosen.

State

Maryland

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWashington, D.C.West VirginiaWisconsinWyoming

Dwelling coverage

Liability coverage

Deductible

Standard ($2500)

Standard ($2500)Standard ($1000)$2,500 with 2% Hurricane deductible$1,000 with 2% Hurricane deductible

Average annual home insurance rates in
Maryland

$1,799 Average rate

Average rate

$1,799/Yr

Lowest rate

$1,064/Yr

Highest rate

$2,187/Yr

Rates by carriers in Maryland

Company	Average annual rate
State Farm	$1,064
Travelers	$1,432
Erie Insurance	$1,671
USAA	$1,695
American Family	$2,060
Chubb	$2,117
Nationwide	$2,165
Allstate	$2,187

Methodology

Insure.com commissioned Quadrant Information Systems to analyse home insurance rates from major insurers in the U.S. The analysis includes over 37 million quotes from 134 companies across more than 34,000 ZIP codes, using standardized coverage levels to calculate national averages. The homeowner profile is a 35-year-old married applicant with excellent insurance score; new business HO3 policy for house built in 2000 with frame construction and composition roof. Other Structures: 10%. Loss of Use defaulted: 10%. Guest Medical limit: $5,000. Deductible limit: $1,000. Personal property: 50% of dwelling coverage for replacement value

Last calculator data updated on: 2026

Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.

Home insurance rates in Maryland by city

See rates in your city

How do I choose the right homeowners insurance in Maryland?

Choosing the right homeowners insurance in Maryland comes down to three priorities: sufficient coverage to fully rebuild your home, a deductible that fits your financial situation and an insurer with solid financial ratings and reliable customer service. The strongest policy strikes a balance between cost and protection, because a low premium means little if your insurer is slow to settle claims or your coverage falls short when it counts.

What to look for in a homeowners insurance policy:

Replacement cost coverage. Your lender will typically require this. It pays to rebuild your home at current construction prices rather than at its depreciated value. Most standard policies include it, but verify that the estimate accounts for current labor and material costs in your area.
A deductible that fits your budget. Higher deductibles reduce your premium but increase what you pay out of pocket after a claim. Pick an amount you could cover without financial hardship.
Adequate liability limits. Liability protection applies when someone is hurt on your property or you accidentally damage someone else’s. Most experts suggest carrying at least $300,000 in liability coverage.
Strong claims handling. Review third-party ratings from J.D. Power and AM Best and read through customer feedback. A bargain policy from a poorly rated company can end up being far more costly over time.
Quotes from at least three insurers. Rates for the same coverage can differ by hundreds of dollars across companies, so comparing is the only reliable way to confirm you’re getting the best value.

The cheapest policy isn’t always the best deal

A lower premium can come with real trade-offs, including steeper deductibles, reduced coverage limits or exclusions for things like water damage or roof replacement. Before settling on the cheapest option, take a close look at what’s actually covered and what you’d owe out of pocket after a claim. Saving $200 a year on your premium can quickly become a costly decision if your policy leaves critical gaps.

What are the most common natural disasters in Maryland?

According to the Federal Emergency Management Agency (FEMA), a U.S. agency that manages disaster response and flood risk, the most common natural disasters in Maryland are some of Coastal flooding, Heat wave and Winter weather. These risks can significantly impact homeowners insurance costs and coverage needs, especially in high-risk areas.

Disaster risk looks very different depending on where you live, and so do the gaps in standard homeowners coverage. Floods and earthquakes are excluded from most policies and each requires its own separate protection, such as flood insurance through FEMA’s National Flood Insurance Program or a stand-alone earthquake policy or endorsement. Don’t wait until a disaster hits to review your coverage. Take time now to identify the major risks in Maryland and fill any gaps before you need to file a claim.

The table below shows the expected annual losses from natural disasters in Maryland:

Natural Hazard(s)	Expected Annual Loss
Coastal flooding, Heat wave and Winter weather	Relatively High

Standard policies don’t cover every disaster

Standard homeowners insurance generally excludes flood and earthquake damage, which can leave you covering major losses on your own. Based on where your home sits in Maryland, a separate flood policy or earthquake endorsement could be essential to closing that gap. It’s worth reviewing your coverage now rather than discovering the shortfall after a loss.

How we picked the top-rated home insurance companies

We used sample rates from Quadrant Data Services for coverage of $300,000 for both dwelling and liability coverage and a $1,000 deductible. We analyzed more than 37 million quotes from 134 companies.

We also gathered AM Best financial strength ratings for each insurance company, along with each company’s National Association of Insurance Commissioners (NAIC) complaint ratio. The NAIC is a regulatory support organization made up of state insurance regulators, and its complaint ratio compares how many complaints an insurer receives to the industry average.

We used these data points to create a score out of five. Only companies for which all three data points are available were included in the comparison.

Frequently asked questions

Does home insurance cover windstorms in Maryland?

Homeowners insurance typically covers wind damage. However, in some states – particularly those vulnerable to damage from hurricanes – your homeowners policy might have a separate deductible for storms such as hurricanes or tropical storms.

These deductibles are often much higher than the deductible that applies to the rest of your homeowners insurance coverage. Maryland does allow separate deductibles for hurricanes and windstorms.

In some cases, windstorm coverage has to be purchased separately; make sure to ask when you buy a policy.

Do I need flood insurance in Maryland?

If you live in a high-risk flood zone in Maryland, you need to purchase flood insurance. A standard homeowners insurance policy does not cover damage from floods. You can check your flood zone on FEMA’s flood maps.

About 90% of all natural disasters include flooding, according to the federal government’s National Association of Insurance Commissioners, so all homeowners should consider flood insurance.

Do homeowners insurance policies cover building code upgrades?

Homeowners insurance typically does not cover the extra cost of bringing your home up to current building codes after a covered loss. If your home is older, you may be required to rebuild parts of it to meet updated regulations, which can increase repair costs significantly.

According to the Insurance Information Institute (III), a nonprofit that provides insurance data and research, homeowners can add an ordinance or law endorsement to cover the cost of required code upgrades during repairs or rebuilding. Without it, those costs are typically paid out of pocket.

How can I save on homeowners insurance?

Getting quotes from several different insurers and comparing them side by side is the single most effective way to save on homeowners insurance. It ensures you’re not paying more than necessary for the coverage you need.

You can also reduce your premium by raising your deductible, but make sure you could cover that amount comfortably if you need to file a claim, since you’ll need to pay it before your insurer covers anything.

Beyond that, many insurers reward qualifying policyholders with discounts. Bundling your home and auto coverage under one provider is a popular option that can lead to meaningful savings.

Upgrading your home’s safety features is another route worth considering. Theresa Breunig-Silbernagel, head of strategy and experience at Main Street America Insurance, recommends installing smoke detectors and security systems.

“Smart home systems such as motion sensors, video doorbells and water leak sensors will send you an alert on your cell phone so you can handle the issue before it becomes a real problem,” she says. “Often, these installed devices can result in discounts.”

Methodology

Insure.com commissioned home insurance rates from Quadrant Data Services in all 50 states as well as Washington, D.C. with coverage levels of $300,000 for dwelling and liability and with a $1,000 deductible. Average rates were calculated using quotes from 134 insurance companies. To rank insurance companies, we used the average rate in the state along with NAIC complaint ratios and AM Best financial stability ratings.

Natural disaster data was drawn from FEMA’s National Risk Index.

Sources:

FEMA. “Flood Insurance.” Accessed May 2026.

Insurance Information Institute. “How much homeowners insurance do you need?” Accessed May 2026.

National Association of Insurance Commissioners. “Flood Insurance/National Flood Insurance Program (NFIP).” Accessed May 2026.

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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.