September 2, 2025
Maryland homeowners enjoy below-average premiums but face rising rates and regional risks. Learn how to manage costs and secure coverage in 2025’s market.
Maryland homeowners face a complex insurance landscape in 2025, with average annual costs of $1,630 - well below the national average but experiencing significant increases. Recent data shows premiums rose by an average of 25% from 2021 to 2024, outpacing inflation and creating new challenges for homeowners throughout the state.
The Maryland homeowners insurance market has experienced substantial price volatility in recent years. While Maryland's average annual cost of $1,630 remains well below the national average of $2,777, the state has not been immune to nationwide premium increases.
According to recent Consumer Federation research, Maryland's average annual premium reached $3,303 by 2024, up from $2,655 in 2021 - representing a significant 25% increase that has forced many families to reconsider their insurance budgets. This surge has been driven by multiple factors including rising construction costs, climate-driven disasters, and insurers' reliance on unregulated global reinsurance markets.
Despite rising costs, Maryland maintains a competitive insurance marketplace with numerous carriers actively writing policies. According to Insurance.com data as of 2025, State Farm's average premiums were among the lowest of major carriers evaluated in Maryland, though actual rates vary based on individual underwriting factors and location. Analysis shows that the difference between carriers can be as much as $3,310 among different insurers.
For homeowners unable to secure coverage in the standard market, The Maryland Joint Insurance Association (JIA) provides insurance coverage to property owners who have been unable to obtain essential property insurance through the competitive marketplace.
Maryland's unique geography creates specific insurance challenges, particularly for coastal properties. Homes near the Chesapeake Bay and Atlantic coastline face elevated risks from windstorms and potential hurricane damage. Many insurers apply wind or hurricane deductibles in designated coastal areas, which may be calculated as a flat amount or percentage of the dwelling coverage.
Standard homeowners policies do not cover flood damage. Flood insurance must be purchased separately, often through the National Flood Insurance Program. The National Flood Insurance Program offers coverage with buildings and content coverage starting at $129 a year for a Preferred Risk Policy, available in medium- to low-risk areas, though actual costs depend on location and coverage selected.
Maryland's older urban areas, particularly Baltimore, present unique coverage considerations. Homeowners in aging urban areas may want to consider water and sewer backup coverage due to aging infrastructure and the prevalence of row homes and townhomes. Properties built before 1978 may require lead paint disclosure and remediation considerations.
Foundation and drainage issues are common due to the state's clay soil composition and variable terrain, making coverage for settlement damage and water intrusion particularly important.
Understanding how Maryland's rates compare to neighboring states provides valuable context for homeowners:
Rates based on $300,000 dwelling coverage with standard deductibles
Based on recent published rate data from 2025, Maryland homeowners pay lower average premiums than many neighboring states, though individual costs may vary significantly based on personal factors. Virginia's average cost of homeowners insurance is about $1,620 per year, while Pennsylvania averages $1,247 per year. Both Delaware and West Virginia show lower average premiums in available data.
For properties that cannot obtain coverage in the voluntary market, Maryland operates the Joint Insurance Association (JIA), also known as the Maryland Property Insurance Availability Program. Limited insurance protection may be available through the Maryland Property Insurance Availability Program, known as the Joint Insurance Association ("JIA") for homeowners who have been denied coverage by standard carriers.
Maryland law provides specific protections for policyholders regarding cancellation and non-renewal:
Recent legislative analysis suggests potential improvements to consumer protections. States should extend that grace period to give homeowners 30 days to catch up on payments, starting from the day that insurers have alerted them that they are late, compared to the current 10-day standard.
As insurance costs continue to rise and the market becomes increasingly complex, providing comprehensive support to homeowners has become more important. Mortgage servicers and insurance professionals can enhance customer experience by partnering with Covered for warm transfer solutions designed to connect homeowners with licensed insurance professionals who can assist with coverage options. This approach may help reduce call center operational expenses while providing customers with access to specialized insurance expertise. Individual outcomes vary, and coverage suitability depends on each homeowner's specific situation and needs.
Given the substantial premium increases, Maryland homeowners may consider several strategies to manage insurance costs:
With construction costs continuing to rise, many industry professionals encourage homeowners to review their dwelling coverage limits annually to ensure adequate protection. The recent premium increases reflect, in part, the elevated cost of reconstruction and repairs.
Maryland's homeowners insurance market in 2025 presents both challenges and opportunities. While premium increases have been substantial, the state maintains average rates below the national benchmark based on available data. The key to navigating this market successfully lies in understanding the unique risk factors, leveraging available coverage options, and working with knowledgeable insurance professionals who can help evaluate both coverage and costs.
Homeowners may benefit from regular policy reviews, maintaining strong credit profiles, and considering supplemental coverages for flood protection and other specific risks. By staying informed about market conditions and regulatory changes, Maryland homeowners can make strategic decisions that provide adequate protection while managing rising insurance costs effectively.
This article provides general information about Maryland’s homeowners insurance market based on available industry data as of 2025. Individual circumstances vary significantly, and premium quotes, coverage options, and policy terms differ by insurance company. Consumers should consult with licensed insurance professionals for specific coverage recommendations and current pricing. Information presented should not be considered as guaranteed outcomes or personalized insurance advice.
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*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
