Who Has the Cheapest Homeowners Insurance Quotes in Maryland?

Find the Cheapest Homeowners Insurance Quotes in Your Area

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While Maryland is the 20th cheapest state for homeowners insurance in the US, there are a handful of areas which are more expensive than others in the state. ValuePenguin conducted a recent analysis on these rates in Maryland to help determine which cities had the most affordable rates (and which were the most expensive)! Overall, the average rate in the state (assuming $100,000 in liability coverage) was $1,236 with the most expensive city costing $1,766 and the cheapest costing $649. Read more below, or enter your zip code into the quote tool above to find homeowners insurance quotes.

Best Homeowners Insurance Companies in Maryland

  • USAA
  • Chubb
  • State Farm

It doesn't matter if you live in Baltimore or Frederick, the best home insurance company for you will combine good coverage features, reasonable prices and a strong customer service reputation. For this ranking we've emphasized customer service, rating the largest homeowners insurance companies in the Old Line State using customer complaints.

RankCompanyMarket shareComplaint ratio
1State Farm18.2%0.26
2Allstate (Encompass)12.2%0.8
6Liberty Mutual8.4%0.69
8American Family Insurance (Homesite)3.6%0.9
9Chubb (Federal Insurance Company)2.6%0.23
10The Hartford1.4%3.98
This analysis incorporates the 10 largest insurance groups in Maryland by market share. The complaint ratio is provided by the National Association of Insurance Commissioners, with a lower ratio indicating customers are happier with their service. The ratio for a group is taken from its largest individual company active in the state. If this company name is distinct from the name of its insurance group, it is noted in parentheses.

Find the Cheapest Homeowners Insurance Quotes in Your Area

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The best home insurance companies in Maryland for customer service are USAA, Chubb and State Farm. The worst of the state's major insurers are The Hartford, Nationwide and American Family. Shoppers should note that only former or active military members and their families are eligible for USAA home insurance. Maryland homeowners are generally satisfied with the customer service of the state's top insurers, with eight out of the 10 receiving a customer complaint ratio below the national median of 1.0. The two exceptions are The Hartford and Nationwide, with the former receiving a particularly poor complaint ratio of 3.98, far above the median.

Maryland Homeowners Insurance Company Reviews

The three largest homeowners insurance companies in Maryland by market share are State Farm, Allstate and Erie Insurance. We reviewed these insurers below, focusing on policy coverage, customer experience and financial stability.

State Farm

The leading writer of home insurance in Maryland (and the country), State Farm stands out for its discounts and its unique coverage features.

State Farm's most competitive discount is its auto and home insurance bundle. Homeowners in Maryland can get up to 35% off their home insurance premium if they buy their auto insurance with the company as well. Homeowners who have prepared their homes to withstand storms in the coastal state can also benefit, as State Farm gives a discount for installing wind-resistant glass in your windows.

With a customer complaint ratio that ranks third of the top 10 insurance companies in the state, you'll be getting one of the better customer service experiences in the area. Plus, the insurer is financially stable, receiving an "A++" rating from A.M. Best for financial strength.


With over 12% of market share, Allstate is the second-biggest home insurance group in Maryland. This calculation combines the premiums from all the Allstate companies and Encompass Insurance, an Allstate subsidiary. Allstate customers in Maryland will have the opportunity to apply for a variety of discounts and get an affordable quote, while Encompass caters to homeowners who want a premium experience, reflected in its higher cost.

If you shop with Allstate home insurance in Maryland, you'll see that it rewards low-risk customers. Customers who install safety features in their home—such as central fire and burglary alarms—and who pay for their policy early and upfront can receive notable discounts. Allstate's claim-free discount stood out to us, with customers who haven't had a recent claim getting the opportunity to save up to 20% on their premium.

Encompass home insurance tends to have higher rates than average, but policyholders will be rewarded with some unique coverage features. The most prominent Encompass feature is called the property location limit. The property location limit covers all of your property—your dwelling, other structures and your personal belongings—under one limit set at 200% of the cost of rebuilding your home. This contrasts with other insurers, which will typically split coverage into individual, lesser limits for specific risks. If you're a Maryland resident with a lot of personal belongings, or with an expensive secondary structure, you can ensure you've got ample coverage with the Encompass property location limit.

Allstate's customer complaint ratio of 0.80 is above the national median, meaning you'll likely receive good customer service, but it ranks seventh of Maryland's top 10 insurance providers, meaning that other companies rate even better. Allstate is financially stable, receiving a superior "A+" financial strength rating from A.M. Best

Erie Insurance

Headquartered in Pennsylvania, Erie Insurance is the third-largest homeowners insurance company in Maryland. Erie offers fairly standard home insurance policies with a notable exception: its base policies have guaranteed replacement cost.

Guaranteed replacement cost means that if your home is damaged or destroyed in a total loss, Erie will cover you for the cost of rebuilding it no matter what. In other words, policy limits are irrelevant. Homeowners in Maryland who want 100% security that their homes will be rebuilt to a similar standard should seriously consider Erie Insurance.

Erie's main downside is the shopping experience. You cannot get a quote online with Erie, so Maryland shoppers will have to get in touch with an insurance agent before comparing its policies with other insurers. Erie does have a strong customer service reputation, however, ranking fourth out of the 10 largest insurers in Maryland for customer complaint ratio. And it's financially stable, too, with an "A+" rating from A.M. Best.

Cheapest Homeowners Insurance Companies in Maryland

We analyzed home insurance rates from 64 underwriters for a house with frame construction and $100,000 of liability coverage in the state of Maryland to see which ones were the best companies for affordability. Across the various counties, we found that Safeco, Lititz, Goodville, Harleysville, and Farmers ranked with the best rates on average. Cumberland, AAA, Farm Family, Windsor-Mount Joy, and Main Street American rounded out the second half of the top ten. Note that AAA requires membership. On average, annual rates at these ten best companies were $456 or 37% cheaper for an annual homeowners insurance policy compared to what the typical company charged in Maryland. The below graph shows the top ten home insurance companies with the best rates in Maryland, and the table below ranks all of the underwriters (grouped by their parent company) from cheapest to most expensive.

ValuePenguin found Safeco had the best homeowners insurance rates in Maryland for a sample residence.

Home Insurance Company

Average Annual Rates



Lititz Mutual Insurance Company


Goodville Mutual Casualty


Harleysville Insurance








Farm Family


Windsor-Mount Joy Mutual Insurance Company


Main Street America Insurance


Universal North America Insurance Company


Peninsula Insurance


Liberty Mutual






Mutual Benefit Group


Penn National Insurance Company


Frederick Mutual Insurance Company


Farmers Mutual of Salem


Cincinnati Ins Co




Horace Mann


Donegal Insurance Group


State Auto


Homesite Insurance Company


Everett Cash


Stillwater Insurance


American Strategic Insurance


Bankers Insurance






Universal Property and Casualty Insurance Company


Allianz Auto Insurance


State Farm


QBE Insurance


Selective Insurance


Erie Insurance










Fireman's Fund


American Automobile Insurance




Brethren Mutual Insurance Company












Most Expensive Cities in Maryland for Homeowners Insurance

Looking at the 5 most expensive cities in Maryland for home insurance, you'll notice that they are all (with the exception of Rockville) coastal cities that touch the Atlantic Ocean or Chesapeake Bay. Because of this these towns are more exposed to large storms and even hurricanes that work their way up the eastern seaboard bringing with them damaging wind and rain.


CityCountyAverage Rate% Increase vs. MD Avg


Ocean CityWorcester$1,76643%




CentrevilleQueen Anne's$1,63232%


Prince FrederickCalvert$1,61331%



Ocean City

Located in the eastern most county in Maryland, it should come as no surprise that home insurance prices in this ocean front community are the highest in the state. Other large cities in Worcester County include Berlin and the county seat of Snow Hill. Average homeowners insurance premiums for Ocean City residents is a whopping $1,766 per year or 43% higher than the state average!


The only inland city in our top 5 most expensive list, Rockville is an affluent city just north of Washington DC. Rockville, located in Montgomery County, is one of many large cities inside county limits alongside Silver Spring, Bethesda, and Gaithersburg. If you want to live in this upscale suburb of DC you'll be paying insurance rates that are much higher than the norm. Homeowners in and around Rockville are paying almost 40% more for their homeowners insurance ($1,713) than the average Maryland citizen.


A small town of 4,200 in Queen Anne's County, Maryland, Centreville ranks as having the 3rd most expensive homeowners insurance rates in the state. Largely a commercial center for a sizable agricultural area in Eastern Maryland, Centreville prides itself on its easy going lifestyle. Home insurance rates in Centreville average $1,632 per year or $136 per month.

Prince Frederick

The county seat of Calvert County, Prince Frederick measures only 3.7 square miles and has less than 3,000 residents. With the Chesapeake Bay to the east and the Patuxent River sitting to the west, the county has a diverse topography showcasing beautiful cliffs on the Bay side while the western half of the county has rolling fields working their way down to the river. For those who own their homes in Prince Frederick, you will pay in the ballpark of $1,613 annually for protection.


The 5th most expensive city for home insurance rates in Maryland, Easton is located in Talbot County on the shores of the Chesapeake. The town is considered one of the top small towns to live in as it boasts easy access to large metro areas without the hassle of dealing with them everyday! Homeowners insurance premiums for Easton residents are expensive however: $1,609 annually or 30% more than the state average.

Cheapest Homeowners Insurance Rates in Maryland: by City

Three of the five cheapest home insurance prices in MD can be found in the western half of the state and dozens of miles inland from the Chesapeake Bay. Unlike the coastal towns in Maryland, cities and counties that reside off of the coast are usually better protected from any large storms off the Atlantic Ocean. The average annual cost of home insurance in these 5 cities is $829 per year versus $1,667 for the 5 most expensive areas!


CityCountyAverage Rate% Decrease vs. MD Avg






Princess AnneSomerset$856-31%






"Where the South Begins", the city of Cumberland in Allegany County is home to over 20,000 Maryland residents spread out over 10 square miles. The county's nickname is derived from its geographic positioning which is just south of the Mason Dixon Line with PA to the north and WV to the south. Rates in Cumberland are the cheapest in the entire state at $649 per homeowner, or 48% cheaper than the MD average.


This town of 2,000 sits in the 2nd largest county in the state (Garrett) which makes up Maryland's westernmost border. Popular activities in the area including a host of outdoor activities from hiking in the summer to cross country skiing in the winter. Home insurance premiums for citizens of Oakland are 41% cheaper than the state average at $734 per year or $61 monthly.

Princess Anne

Located on Maryland's Eastern Shore, Princess Anne is in Somerset County which is sandwiched between the Chesapeake Bay and the Atlantic Ocean and is home to 26,000 Marylanders. The area is renowned for its tranquil pace of life and natural beauty. Fortunately for residents, it's now also known as the 3rd cheapest place in MD to purchase insurance for your home. Rates in Princess Anne average $856 per year.


Hagerstown is a city of 40,000 located in Washington County and is also the fastest growing metro area in Maryland. The town has become the primary commercial hub for much of western MD because of its proximity to many of the main railroad lines in addition to both I-70 and I-81. In addition to its relatively low cost of living, Hagerstown also has the 4th lowest homeowners insurance rates in MD at $930 per year.


Within 150 miles of 6 major cities, Salisbury is a well positioned commercial hub in southeast Maryland. The largest employers in Salisbury include Perdue Farms (who is also HQ'd in Salisbury), Salisbury University, Verizon, and Peninsula Regional Medical Center. Homeowners in Salisbury will benefit from some of the lowest home insurance costs in MD with rates averaging $976 annually.

Average Cost of Homeowners Insurance in Maryland: by City

Our study analyzed 24 cities in the state of Maryland (one in each county) in order to determine where the towns stacked up against each other when it came to homeowners insurance rates. So if you're curious about where your city ranks just check out our graph below to see the average price:

In Maryland, ValuePenguin found the average cost of homeowners insurance for a sample policy and residence was $1,236.

Study Methodology

Our study looked at one city each of Maryland's 24 counties. Rates for Maryland were obtained from the state's Department of Insurance. They assume a home with frame construction, a replacement cost including contents, $500 deductible, and $100,000 liability coverage. For homes that are worth substantially more or less premiums will fluctuate. For additional tips on shopping for homeowners insurance in Maryland you can always look at the guide provided by the state's Insurance Department.

Finally, here's a list of the cities included in our study in alphabetical order:


Average Rate





























Lexington Park




Ocean City


Prince Frederick


Princess Anne












Comments and Questions

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