The average Maryland homeowners policy costs about $1,578 a year, according to the National Association of Insurance Commissioners’ latest homeowners report (published July 2026, using 2023 data). Your own quote can land well above or below that. What drives it: the cost to rebuild the house, the age of the roof and wiring, how close you are to water, your deductible and your claims history. Flood is usually not covered and is a separate policy.
Insurance is one of those things buyers leave for the last week. Then they find out the 1940s house they love has wiring an insurer won’t write. Here’s what to know, and when to start shopping. For the bigger picture on buying, start on our buyer page.
This is general information, not insurance advice. A licensed Maryland agent or company quotes your actual policy.
Average premiums
The NAIC homeowners report (data for 2023, released July 2026) has these Maryland averages:
| Policy | What it covers | Maryland average premium (2023) |
|---|---|---|
| HO-3 | The standard owner-occupied house policy | $1,578 |
| HO-2 | Named-peril owner policy | $1,513 |
| HO-6 | Condo unit owner policy | $468 |
| HO-4 | Renters policy | $162 |
The same report shows premiums rising with the amount of insurance. Across all Maryland owner-occupied policy forms, the average was $1,381 for homes insured for $350,000 to $399,999, and $1,807 for $500,000 to $599,999.
These are averages across a lot of houses, and 2023 numbers. Premiums have moved since, so treat them as a starting point, not a quote.
What a homeowners policy covers
A standard HO-3 policy has a few parts, and each has its own limit:
- Dwelling: the house itself, based on rebuild cost.
- Other structures: detached garages, sheds, fences.
- Personal property: your belongings.
- Liability: if someone is hurt on your property or you damage someone else’s.
- Loss of use: extra living costs if the house can’t be lived in after a covered loss.
How the policy pays matters too. The MIA’s homeowners tips explain the difference between replacement cost, which pays to repair or replace without taking off for age, and actual cash value, which subtracts depreciation. The MIA notes that a replacement cost policy generally pays the lesser of the cost to repair the damaged material or to replace it. Ask which applies to the house and to the roof, because some policies treat the roof differently.
What drives your quote
Rebuild cost, not price
Your dwelling coverage is based on what it would cost to rebuild the house, not what you paid. The Maryland Insurance Administration notes that Maryland law bars your lender from requiring you to insure the property for more than its replacement cost. A Baltimore rowhome bought for $180,000 can still be expensive to rebuild with plaster walls and brick.
Roof age and type
An old roof can mean a higher quote, or a policy that pays only depreciated value for roof damage. The MIA points out that wear and tear and deterioration of a roof are generally not covered. Get the roof’s age from the seller, and look at it in the inspection.
Wiring and plumbing
Old electrical systems, small service, or panel brands with a bad reputation can limit your choices. Get the inspection report to your insurance agent. More on what to look for in buying a rowhome in Baltimore.
Distance to water
Waterfront and near-water homes along the Bay and its rivers can carry higher wind and hurricane deductibles. The MIA advises asking whether there’s a separate deductible for wind, hurricane or other storm losses. Browse waterfront homes with that cost in mind.
Claims history
Prior claims raise premiums. Per the MIA, an insurer may not keep you in a higher premium class for more than three years because of a specific claim.
Deductible
A higher deductible lowers the premium. Pick one you could actually pay the week after a storm.
Flood insurance and FEMA maps
Most homeowners policies exclude flood. The MIA is blunt about it: flood is not covered under most homeowners policies. You can buy it through the National Flood Insurance Program or, in some cases, as a private policy or endorsement.
Check any address on the FEMA Flood Map Service Center. If the home is in a special flood hazard area and your loan is federally backed, the lender will require flood insurance and has to tell you before closing.
Timing matters. FEMA says a new NFIP policy usually takes 30 days to go into effect. The exception is a policy bought in connection with your loan closing, which can start at closing if it’s applied for and paid on time. Don’t wait until a storm is in the forecast.
Maryland is adding a disclosure step. Per the MIA, starting July 1, 2027, sellers of many homes with four or fewer units will have to give buyers a flood risk disclosure form before the contract is signed.
Water backup
Water backing up through a floor drain or sewer line isn’t flood, and it isn’t covered by a basic policy either. Maryland law requires every company selling homeowners insurance in the state to offer a water backup endorsement, per the MIA. If the house has a finished basement, I’d ask for it.
Condo HO-6 vs the master policy
In a condo, the association’s master policy covers the building and common elements. Your HO-6 covers your belongings, your liability and, depending on the master policy, some or all of your unit’s interior. In Maryland, the resale package has to include a notice of your share of the master policy deductible. Read it. If the association has a high deductible, you want enough coverage in your HO-6 to pay your share. See buying a condo in Maryland.
Shop before you’re under contract
Start before you write the offer, at least on the houses you’re serious about:
- Call an agent or two with the address, year built, roof age and square footage.
- Ask about wiring, roof, wind deductible and whether they’ll need an inspection.
- Compare quotes with the same limits and deductibles. The MIA’s advice is to give every insurer the same information.
- Ask about bundling with your car policy, and discounts for alarms or updates.
- Make sure the insurer and agent are licensed in Maryland.
Your first year’s premium usually shows up in your closing costs, either paid at settlement or as part of your escrow deposit. See Maryland closing costs for buyers.
Insurance and the inspection report
The inspection report is your insurance cheat sheet. Things that can change a quote or make an insurer say no:
- Roof age and condition
- Electrical panel type, service size and any old wiring
- Old water heaters and supply lines
- Signs of past water damage
- Wood stoves and chimneys
- Pools and trampolines
If something comes up, you can ask the seller to fix it before closing, ask for a credit, or find an insurer who will write the house as is. Find out inside your inspection period, not after.
Bottom line
Expect somewhere around the Maryland average for a typical house, more for older homes, big homes and homes near water, and add flood coverage when the map or your gut says so. Start quotes early and use your inspection report. If you want an agent who will flag insurance issues before you write the offer, talk to The Wilson Home Team of Samson Properties or call Stacey at (240) 913-5221.
Sources
- National Association of Insurance Commissioners, Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2023, July 2026
- Maryland Insurance Administration, Homeowners Insurance Tips, checked October 2026
- Maryland Insurance Administration, Insurance tips for first-time homebuyers, checked October 2026
- FEMA, Flood Insurance, checked October 2026
- FEMA, Flood Map Service Center, checked October 2026
- Maryland Code, Real Property §11-135, checked October 2026