Homeowners insurance in Maryland protects your home against disasters, provides liability coverage for accidents, and helps you rebuild after home damage. The average cost of homeowners insurance in Maryland is $824 annually, which is 18 percent lower than the national average. Finding the best deal on homeowners insurance requires searching out the right insurance coverage for your home, looking into risk factors that increase homeowners insurance rates, and looking beyond the base price to determine whether a policy is truly the best deal.
What type of coverage are you looking for?
Basic homeowners insurance in Maryland covers damage caused by fire, lightning, hail, high winds, and human caused problems such as vandalism. In addition to this disaster protection, the policy also covers liability insurance if someone gets hurt on your property and sues you. Some other elements in a typical homeowners insurance policy include personal property coverage, loss of use coverage, and dwelling coverage. The basic policy may be less expensive than other options, but it doesn’t always offer you the protection you may need in the event of a disaster.
The most common addition to a basic policy is flood insurance. This add-on does not come included with homeowners insurance policies for homes that aren’t located on a flood plain. However, if a major flood occurs and goes into areas where flood coverage is not typical, you may not be covered under your policy. Another area a basic insurance policy fails to cover is replacing high value items, such as rare jewelry or collectibles. These policy additions raise the homeowners insurance cost, but may be necessary for full protection and coverage.
Where are you located in Maryland?
Homeowners insurance costs vary throughout the state. The lowest areas for homeowners insurance include Cumberland, Hagerstown, and Salisbury, which have 31 to 48 percent lower rates than the rest of Maryland. Particularly expensive homeowners insurance regions include Ocean City, Rockville, and Easton, which average 30 to 43 percent more than the Maryland average. Typically, the further inland you go in Maryland, the lower your insurance rates are. If you’re interested in purchasing a house but you’re worried about the insurance costs, explore house options in the western half of the state.
Is the cheapest Maryland homeowners insurance policy actually the best deal?
The lowest cost policy may not be the best deal in the long run. You need to look beyond the base monthly cost into what you’re actually getting for your premium payment. If it’s impossible to reach anyone when you need to file a claim, your claims get denied on a regular basis, or customer service that’s unhelpful, you end up wasting a lot of time fighting for payment on claims. When you’re comparing homeowners insurance companies, look beyond the price at a few additional elements to determine whether you’re getting a good deal.
- How satisfied are customers of the homeowners insurance company? While people are more likely to share negative experiences than positive ones online, online reviews can be a valuable source for finding out whether an insurance company is responsive during and after a disaster. Reach out to your social network to get insurance company stories from friends and family. \
- What additional services does the company offer? Some insurance companies go above and beyond for their customers, providing useful extras such as sending claims from a smartphone app, using innovative technology to examine the home for hazards, pet injury coverage, and locksmith services. These companies may charge more, but the extra perks and policy add-ons can provide significant value for your payment.
How can you get discounts on your Maryland homeowners insurance policy?
Much like auto insurance, you can get discounts on your Maryland homeowners insurance policy by meeting specific criteria. One of the easiest ways to get a discount on your homeowners insurance in Maryland is to keep multiple insurance policies with the same company. If you go to the same company to cover your house and your car, you get a multiple policy discount.
Another way to access discounts from your homeowners insurance policy is to increase the deductible on your policy. A high deductible plan costs lower in monthly premiums, although you do have to pay more if you make a claim. Several other discounts are offered for customers with high credit scores, those who have homes with security systems, and customers who stay with the same company over the long term. You may also get discounts if you go a long time without making a claim, or falling below a certain number of claims throughout the year.
What risk factors increase the cost of homeowners insurance in Maryland?
Your homeowners insurance rates may be higher due to higher risk factors associated with your property. These risk factors can lead to more frequent or more costly claims, so the insurance company tries to compensate for this possibility through an increased monthly premium. Pools, trampolines, and other yard elements have a higher chance for a liability claim. Dogs also fall under this category, as many claims come from dog bite incidents.
Interior elements of your home can also lead to increased premiums, such as wood burning fireplaces or wood stoves. In addition, older homes with electrical or plumbing systems that haven’t been updated are associated with higher fire risk, which results in increased homeowners insurance rates in Maryland.
2 Point Highlight
Finding the best deal on homeowners insurance requires searching out the right insurance coverage for your home, looking into risk factors that increase homeowners insurance rates, and looking beyond the base price to determine whether a policy is truly the best deal.
You need to look beyond the base monthly cost into what you’re actually getting for your premium payment.
