Homeowners insurance in Maryland

The home insurance market in Maryland

Maryland homeowners paid $3.50 billion in homeowners premiums in 2025, according to NAIC market share data. These are the 10 largest insurance groups by 2025 direct premiums written:

Maryland has no dominant carrier. State Farm leads, but five groups each write more than 10% of the market and together hold about 63%. Erie Insurance, 10th nationally, is third here, and USAA's 10.54% share is half again its 7.01% national share. That spread helps when you shop after a nonrenewal.

What drives home insurance costs in Maryland

NAIC's average HO-3 premium in Maryland was $1,578 in 2023, about 9% below the national $1,737 and near the middle of the states (27th lowest of 51, by our ranking of NAIC's table). The Maryland Insurance Administration (MIA) blames climate change and inflation: costlier materials and contractor labor, more severe storms, and rising home values that push Coverage A (dwelling) limits up at renewal.

Living near the water is the biggest availability problem. In its November 2024 Market Hardening Survey, the MIA found that 23 of 29 responding carriers restrict new business or renewals by distance to the coast, typically somewhere between 500 feet and 5 miles depending on the company. The restrictions fall mostly on the Eastern Shore along the Chesapeake Bay and the Atlantic. Worcester County was named most often, many carriers treat islands such as Hoopers, Smith, Taylor and Tilghman as unacceptable, and some raised minimum all-peril deductibles in coastal counties.

Nonrenewals have climbed statewide. Company-initiated nonrenewals rose from 4,841 in 2021 to 8,663 in 2023, an increase of about 79%. Maintenance was the reason carriers cited most, and many insurers now inspect homes before renewal. Eleven carriers restrict coverage by roof age, and some pay wind and hail roof losses only at actual cash value.

Deductibles and coverage rules to know

Maryland sets a single statewide trigger for a mandatory percentage hurricane deductible (Md. Ins. §19-209). It applies only from the moment the National Hurricane Center issues a hurricane warning for any part of the state until 24 hours after the last warning ends, and it applies wherever your home is, so a warning for Ocean City triggers it in Frederick too. An insurer can require more than 5% of Coverage A only under an underwriting standard filed with the Commissioner at least 60 days in advance. A "Percentage Deductible Notice" at issue and each renewal must give the percentage, when it applies and an example (§19-209.1). Say your Coverage A is $400,000 and your hurricane deductible is 2%: you pay the first $8,000 of the hurricane loss. Try your numbers in the hurricane and percentage deductible calculator and read hurricane and named-storm deductibles explained.

Maryland also limits why an insurer can drop or price you (§27-501):

• No credit scores. Insurers may not use credit history to underwrite, rate, tier or cancel homeowners policies.
• Old and weather claims. A claim more than three years old cannot be the reason for a cancellation, nonrenewal or refusal to write. Weather-related claims justify a nonrenewal only if there were three or more in the past three years, unless you ignored a written repair request that would have prevented the loss.
• Questions are not claims. Calling to ask whether something is covered cannot count against you if no claim is paid.
• Notice. Nonrenewal, or cancellation for any reason other than nonpayment, needs 45 days' written notice by a tracked first-class mail method; nonpayment needs 10 days (§27-602). Midterm cancellation is limited to fraud or misrepresentation, a threat to public safety, an increased hazard, nonpayment or an arson conviction. The notice must give the specific reason (§27-604) and point you to the Joint Insurance Association.
• Protest in time. If you ask the Commissioner to review a cancellation or nonrenewal before it takes effect and the MIA begins action, the policy stays in force until it rules (§27-501(f)).

Flood and other gaps

Homeowners and JIA policies exclude flood. FEMA data show about 61,000 NFIP policies in force in Maryland as of September 30, 2026; Worcester County holds about 47% of them and the Town of Ocean City alone about 40% (our calculations from FEMA's community figures). Anne Arundel, Baltimore County and Baltimore City follow far behind. Start with NFIP flood insurance explained.

In May 2026 the governor signed Chapters 696 and 697, which direct the University System of Maryland to study climate change, homeowners insurance and disaster preparedness, including the NFIP and private flood market, with a report due by July 1, 2027.

If you can't find coverage

The Maryland Joint Insurance Association is the state's FAIR plan. Every insurer licensed to write property coverage in Maryland is a member; it is not a government agency and carries no financial strength rating. It sells HO-2, HO-4, HO-6 and HO-8 homeowners forms (no HO-3) and a DP-1 dwelling fire form covering fire, extended coverage and vandalism. Limits top out at $614,000 for Coverage A and $307,000 for Coverage C. Homeowners policies require an owner-occupied home; seasonal dwellings, working farms, mobile homes and vacant properties are ineligible.

Apply through an agent or directly with your nonrenewal notice and photos of the house. Every property is inspected, and the JIA may add condition charges or exclusions until repairs are made. Premiums of $200 or more can be paid in three installments. Above the JIA's limits or outside its rules, the fallback is surplus lines home insurance when standard carriers say no. See FAIR plans explained: the insurer of last resort for homes.

Claims rules and deadlines

Maryland's claim regulation (COMAR 31.15.07) requires an insurer to acknowledge your claim within 15 working days and to affirm or deny coverage within 15 working days after receiving completed claim forms or proof of loss. If its investigation of your claim is not finished within 45 days, it must tell you in writing why, and again every 45 days until it decides. Time spent waiting for information it asked you for does not count. Unrepresented claimants must be warned in writing that a statute of limitations may apply.

If you believe the insurer acted in bad faith, Maryland routes the case through the MIA first (Md. Ins. §27-1001). You file a complaint with your proof-of-loss documents; the insurer has 30 days to answer and send its claim file; and the MIA decides within 90 days whether the insurer owed the claim and acted in good faith. Either side can request a hearing or appeal to circuit court. A bad-faith finding adds interest and attorney fees, capped at one-third of actual damages. See bad faith claim handling: what it means and what it doesn't.

A policy clause giving you less time to sue than Maryland law allows is void (§12-104), and the general limit for civil actions is three years from when the claim accrues. When a claim accrues can be disputed, so see an attorney early.

Discounts and mitigation programs

Every homeowners insurer must offer at least one actuarially justified discount for documented hurricane and storm improvements (§19-210): shutters, a secondary water barrier, reinforced roof coverings, braced gable ends, roof-to-wall connections, opening protection, and stronger exterior and garage doors. A contractor licensed by the Maryland Department of Labor must inspect the work, and insurers must tell you each year how to apply. The JIA has its own windstorm mitigation credit form. Maryland was not among the nine states IBHS listed in July 2025 as running FORTIFIED grant programs. See wind mitigation inspections and discounts.

Where to get help

The Maryland Insurance Administration is at 200 St. Paul Place, Suite 2700, Baltimore, MD 21202. Call 410-468-2000 or 800-492-6116 toll free; the auto and homeowners complaint line is 410-468-2340. File a complaint online with documents attached, or mail, fax or email a property and casualty complaint form. If you dispute a premium increase, keep paying the bill; if the MIA finds the increase improper, the insurer must refund the overpayment. See how to file a complaint with your state insurance department and the nonrenewal action plan. Neighboring state guides: Delaware, Pennsylvania and Virginia.