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2019 Guide: Best Homeowners Insurance Companies in Maryland

Maryland’s average premium rate for homeowners insurance is $982 per year. It’s almost $200 less than the national average of $1173. While this is awesome news for homeowners in Maryland, you cannot overlook the fact that premium prices keep fluctuating now and then. The premium rate you pay would depend on a variety of factors such as homeowners insurance provider you choose, and other factors.
Maryland’s average premium rate for homeowners insurance is $982 per year. It’s almost $200 less than the national average of $1173. While this is awesome news for homeowners in Maryland, you cannot overlook the fact that premium prices keep fluctuating now and then. The premium rate you pay would depend on a variety of factors such as homeowners insurance provider you choose, and other factors.

Despite the coastal climate and mid-Atlantic location of Maryland, the average yearly premium price is just $982, almost $200 lower than the nation’s average of $1173. That does not mean natural disasters don’t affect Maryland; both Hurricane Irene and Superstorm Sandy wreaked havoc in the state recently with heavy snowfall and flooding in different areas.

As a homeowner in Maryland, you’re lucky in more than one ways. In addition to low premium prices, Maryland has taken the necessary steps to ban homeowners insurance companies in Maryland from checking credit history. They’ve also made it mandatory for home insurance companies to offer endorsements for water damage. However, if you don’t make an informed choice, you can still end up paying hefty insurance premiums.

Choosing the right homeowners insurance in Maryland is the first step toward securing your property. To make sure your dwelling is protected in the event of natural calamities, you’ll need to find a homeowners insurance that provides you with adequate coverage without overcharging you. Here, in this post, we’ll list the top 5 homeowners insurance companies in Maryland. We’ll discuss the benefits of each, and provide you with additional tips to help you pick the best option for your home.

Top 5 Homeowners Insurance Companies in Maryland

Here’s the list of top 5 homeowners insurance companies in Maryland:

Erie Insurance

When it comes to customer satisfaction and support, Erie Insurance rank number 1 on the list. It’s the only homeowners insurance company in Maryland that has received an overall customer satisfaction score of 90 from Consumer Reports. J.D. Power has rated the company “average.”

The homeowners insurance policies are sold by a network of insurance agents. So, this is one issue you can face with Erie Insurance. While you get an opportunity to work with local agents who’re working with different Maryland homeowners insurance companies, you have to wait for their response and cannot expect information right away.

The company provides homeowners with comprehensive coverage options. It’s probably the only company on our list to offer replacement coverage. Erie’s endorsements cover everything from firearms to floods. You can also choose from different options for rental income protection and service line. However, the premium prices can vary from cheap to very expensive depending on the value of your home and other factors such as its exact location. The company does not offer many discounts on the policies.

Allstate

Allstate is popular for lucrative discounts, especially on the bundled insurance. For instance, you can get up to 30% discount on bundled auto and home insurance. You can also enjoy discounts for signing up with Allstate, registering for Autopay, and installing protection systems such as fire and burglar alarms. Retired homeowners and new home buyers are also eligible for special discounts. Moreover, if you register for a Claim-Free Bonus, the company will provide you with cash back for each year that goes without a claim.

The “Claim Rateguard” is another compelling feature by Allstate. It’s an optional coverage option that protects you from an increase in premium prices after your first claim. You may have to pay extra for the optional coverage; however, it’s worth the extra bucks. In case you didn’t know, Maryland’s homeowners insurance premiums rise pretty quickly after the first claim.

Allstate’s website is information, and comprises online resources that are helpful and valuable. Some interesting features on their site include the engaging articles, the Home Inventory app that allows you to store the details of your valuables along with their photos, and the Common and Costly Claims tool that can help you identify the common claims in your area.

Liberty Mutual

If you’re looking for a customizable homeowners insurance policy, Liberty Mutual can be a good choice. The company provides an array of endorsements and coverage options. The special “Inflation Guard” offering keeps a check on the inflation and does not allow your premium rate to increase due to inflation. It also covers loss forgiveness and protects your premium rates from rising after your first claim. The coverage options are listed on Liberty Mutual’s site along with useful online resources such as blogs, articles, videos, etc.

You can request a quote online or get in touch with a Liberty Mutual insurance agent for more information. However, the company will ask for your Social Security number without which you won’t be able to proceed. In fact, Liberty Mutual is the only homeowners insurance company in Maryland that allows customers to buy homeowners insurance online, without the intervention of an agent. Nevertheless, an agent may be able to help you with a better premium price.

Travelers

If the financial backing of the homeowners insurance company matters to you the most, Travelers can be your ideal match. They’ve outdone all other homeowners insurance companies on the list with an “A++” rating from A.M. Best and Moody’s. So, you won’t have any claim-related issues here.

Their premium rates are easily affordable, and the company can be a good option if you’re on a tight budget. The only thing it lacks is the building ordinance coverage. The company offers special endorsements for “green” homeowners that cover the construction costs involved in transforming your home into an environmental-friendly home. You are also eligible for a 5% discount if your home is LEED-certified.

State Farm

If you’re new to the homeowners insurance space, State Farm is a good option. The company’s site has a variety of online sources to help you with all the information you need regarding homeowners insurance Maryland. Using the “Home Inventory” tool, you can track your belongings and share the information with your agent in the event of a claim.

You can even buy your homeowners insurance policy online using their “360Value” tool. The process is a little time-taking, but it’s worth the patience and time. You may have to answer questions such as your roof type, and other detailed questions about your dwelling.

However, we’ve put State Farm last on the list as the quotes offered by the company are higher than all the other Maryland homeowners insurance company listed here.

Additional Considerations Before You Commit to a Homeowners Insurance Carrier

There’s more to the story than identifying the top 5 homeowners insurance providers in Maryland. Here are some additional things you should consider before you commit to a homeowners insurance company in Maryland:

  1. Understand that your credit score has nothing to do with your homeowners insurance premium. By banning credit score inclusion in the premium calculation, Maryland is trying to protect homeowners with a poor or average credit score. Many insurance companies would argue on this, so be informed that the credit score has no effect on your premium amount.
  2. Consider a company that does not hike your premium rate after the first claim. Research shows that homeowners in Maryland witness up to 19% increase in their premium rates after filing their first claim. Out of the companies mentioned above, Allstate and Liberty Mutual provide protection against this increase.
  3. Compare the premium rates being offered by different homeowners insurance providers in Maryland, and then make a choice. Don’t rush into a decision. Haste makes waste. Take time, explore as much as you can, and then narrow down your choice to the best homeowners insurance company in Maryland.

If you’re currently evaluating your options for homeowners insurance on your next property in Maryland, a good first step is to connect with an experienced real estate agent in your area.

Agents can provide valuable guidance and advice on what kind of coverage you should be looking for, how much you’ll need given your property type and location, and make recommendations that can help you save on your monthly premium. They can also point you in the direction of quality insurance carriers and trustworthy local agencies or independent agents.

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Andrew Schmeerbauch

Andrew Schmeerbauch is the Director of Marketing at Clever Real Estate, the free online service that connects you top agents to save on commission. His focus is educating home buyers and sellers on navigating the complex world of real estate with confidence and ease. Andrew has worked on projects for the United Nations and USC and has a particular passion for investing and finance. Andrew's writing has been featured in Mashvisor, L&T, Ideal REI, and Rentometer.

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