Maryland Home Insurance Guide

Last Updated on September 29, 2020 by Andrew Lee

As someone who invested a lot of money in purchasing a home, you should already realize the importance of protecting it and all of its contents. Because there are just so many things and events that can wreak havoc to this expensive investment of yours, you should protect it with sufficient insurance coverage.

With a proper Maryland homeowners insurance program, you can depend on your insurer to provide you with financial aid. Your policy will help cover costs associated with repairing, rebuilding, or replacing structural materials, building components, furniture, personal belongings, etc. in the event a disaster strikes and leaves wreckage.

Homeowners paid an average of $904 putting Maryland at the 33rd spot with the highest insurance premiums

MD’s homeowners insurance premium average vs. the national average

It pays to know the statistics on the national and per-state average of homeowners insurance premiums, as this’ll help you avoid signing a contract that will just overcharge you.

Fortunately, the National Association of Insurance Commissioners (NAIC) gave information on the most recent numbers for both the national and the state average. The national average amounts to $1,096, while Maryland’s at $904. This puts MD at the 33rd spot of the organization’s ranking of states based on a higher to lower premiums average.

ValuePenguin also added that in the State of Maryland, the average monthly payments homeowners pay towards their property’s insurance is $68.67.

Why you need to insure your home (and its contents) in the first place

According to Maryland Insurance Administration, the top three reasons why residents purchase homeowners insurance are: avoidance from high and unnecessary out of pocket expenses, protection from lawsuits that may be filed against them, and mortgage lenders requiring this insurance.

According to the Maryland Insurance Administration, there are several good reasons the state’s residents purchase homeowners insurance. Below are top three of them.

Arguably the one that tops the list is to avoid high and unnecessary out of pocket expenses when they experience unfortunate yet unpredictable situations such as an accident, theft, or house fire.

MD homeowners also purchase this insurance in order to protect themselves from lawsuits that other people may file against them. These legal liabilities arise when other people get hurt or have any of their property damaged due to the homeowner’s fault.

Last, but not the least, is because of the simple fact that mortgage lenders require their borrowers to carry this insurance. Because home lending companies have also invested quite a large amount of money in financing their clients’ home purchases, it makes sense for them to want to have it protected.

Homeowners policy types available to Maryland consumers

In the State of Maryland, you can choose from a wide array of homeowners insurance policy programs. Some of them have similarities, but they also vary in terms the types and number of perils they cover. They can also take the form of any of the three policy classifications, namely: named peril, open perils, or a combination of the two previous ones.

The standard homeowners insurance policies available to Maryland residents include the following:

  • Named Peril, also known as the HO-2 Broad Form
  • HO-3 Special Form
  • Contents Broad Form, or the HO-4 Renters Insurance
  • HO-6 Condominium Unit Owners
  • Modified Coverage Form, referred to also as the Market Value or Older Homes Forms

You should base your decision as to which of these policies to get on these factors: the specific type of housing you want to insure (standard residential dwelling you own, rental apartment, condominium, or an aged home); your budget; and the amount of coverage that best suits your needs, preference, and financial capability.

The bottom line

You should never underestimate the great value and importance of having a Maryland homeowners insurance policy with sufficient coverage. Always keep in mind that your home is just as susceptible to damages or losses as the property of anyone else, so keeping it insured adequately can help you protect everything you’ve worked so hard for.