Homeowners insurance in Delaware

The home insurance market in Delaware

Delaware homeowners paid $535.2 million in homeowners premiums in 2025, according to NAIC market share data. These are the 10 largest insurance groups by 2025 direct premiums written:

State Farm writes more than a quarter of the market, nearly three times the share of USAA in second place, and the top 10 groups together write about 80%. The voluntary market still covers nearly everyone. The Delaware FAIR Plan's 2024 annual report notes that "a wide range of companies" do business in the state despite its hurricane exposure from the Atlantic Ocean and Delaware Bay, which is why the plan itself stays small.

What drives home insurance costs in Delaware

Prices here are modest by national standards. NAIC's average HO-3 premium in Delaware was $1,196 in 2023, about 31% below the national $1,737 and the 11th lowest among the 50 states and D.C. by our ranking of NAIC's table.

Storm and flood exposure is concentrated on the coast: about 86% of the state's NFIP flood policies are in Sussex County, and the FAIR Plan makes its hurricane deductible mandatory only in five beach-area ZIP codes. The house itself matters too: in a March 2026 advisory the Department of Insurance told homeowners that premiums rest on the replacement cost of the home and its own risk profile, and suggested keeping roofing, wiring and smoke detectors up to date.

That advisory answered a practical question after the recent county property reassessments: reassessments do not set homeowners premiums, insurers do not use county tax assessments, and a department survey found no carrier raising rates solely because of the new assessments.

Deductibles and coverage rules to know

Delaware does not set hurricane deductible percentages or triggers for private insurers; each company defines them in its policy. The department's homeowners guide describes a hurricane deductible of typically 2% of the property's value. What the law does require is disclosure (18 Del. C. §4140). An insurer that uses a separate wind/hail or hurricane deductible must give clear and prominent notice at issuance and after any insurer-initiated change, spell out the trigger, and, for a percentage deductible, show an example. The statute's own example: a 2% deductible on a house insured for $300,000 means you pay the first $6,000 of the wind, hail or hurricane loss. Try your numbers in the hurricane and percentage deductible calculator, and read hurricane and named-storm deductibles explained for how triggers work.

Rules on keeping your policy (18 Del. C. §§4122-4124):

• Nonrenewal: at least 30 days' written notice with the specific reasons, by certified mail or USPS tracked mail. If the insurer fails to send either a renewal offer or a proper nonrenewal notice, coverage continues on the same terms until you accept replacement coverage or agree to the nonrenewal.
• Cancellation: 30 days' notice with reasons (10 days for nonpayment). After 60 days in force, only listed reasons qualify, such as nonpayment, fraud or a substantial increase in hazard.
• Declinations: you can ask in writing, within 90 days, why you were turned down, and the insurer must explain within 21 days. An insurer may not decline or drop you because another insurer did or because you were in the FAIR Plan.

Flood and other gaps

Homeowners policies exclude flood. FEMA data show about 24,900 NFIP policies in force in Delaware as of September 30, 2026, and about 86% of them are in Sussex County (our calculations from FEMA's community figures). Delaware's Private Primary Residential Flood Insurance Model Act sets rules for private flood policies sold as an alternative. Start with NFIP flood insurance explained and Private flood insurance vs the NFIP.

If you can't find coverage

The Delaware FAIR Plan, formally the Insurance Placement Facility of Delaware, sells basic property coverage on the ISO DP 00 01 form: fire, extended coverage and vandalism, without theft or liability. The maximum for an occupied one- to four-family dwelling is $500,000 for building and contents combined. A $2,000 hurricane deductible is mandatory in ZIP codes 19930, 19944, 19958, 19970 and 19971 and optional in 11 other nearby ZIP codes. The plan is small: it issued 1,227 policies in 2024 and wrote $607,263 in premium, and it is run by staff of the Pennsylvania FAIR Plan in Philadelphia. You can apply through an agent or directly. See FAIR plans explained: the insurer of last resort for homes.

Claims rules and deadlines

Under Regulation 902, an insurer must acknowledge and respond to your claim communications within 15 working days, begin investigating within 10 working days of your notice of loss, and affirm or deny coverage within 30 days after receiving your proof of loss or explain in writing why it cannot. Once a claim is settled, Regulation 903 requires payment within 30 days.

Delaware's distinctive tool is arbitration (18 Del. C. §331). If you and your insurer disagree about how much is owed, not whether the loss is covered, you can ask the Department of Insurance to arbitrate within 90 days of the insurer's settlement offer or denial. A three-person panel of an attorney and two disinterested adjusters hears the case; the filing fee is $50, and either side can take it to Superior Court within 90 days of the decision. It does not apply if your policy has a department-approved appraisal or arbitration clause, so check the appraisal clause first.

Your policy may not require you to sue sooner than one year after the insurer denies the claim (10 Del. C. §8106(b)).

Discounts and mitigation programs

Delaware has no state discount mandate or grant program for wind mitigation that we found, and it is not among the nine states IBHS listed in July 2025 as running statewide FORTIFIED grant programs. Discounts for a newer roof, protective devices or a FORTIFIED designation are set company by company, so ask before you re-roof and compare quotes; wind mitigation inspections and discounts explains what insurers look for.

Where to get help

The Delaware Department of Insurance Consumer Services Division takes calls at 800-282-8611 (toll-free in Delaware) or 302-674-7300, and email at [email protected]. File a complaint online or write to 1351 West North Street, Suite 101, Dover, DE 19904. A complaint about an improper nonrenewal or cancellation should be filed within 90 days of the violation (18 Del. C. §4125). See how to file a complaint with your state insurance department and the nonrenewal action plan. Neighboring state guides: Maryland, New Jersey and Pennsylvania.