Homeowners Insurance Basics

Who Has the Cheapest Homeowners Insurance Quotes in Maryland?

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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. 

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 CompanyAverage Annual Rates
Safeco $651
Lititz Mutual Insurance Company 665
Goodville Mutual Casualty 720
Harleysville Insurance 757
Farmers 814
Cumberland 818
AAA 825
Farm Family 827
Windsor-Mount Joy Mutual Insurance Company 843
Main Street America Insurance 879
Universal North America Insurance Company 892
Peninsula Insurance 906
Liberty Mutual 908
AIG 909
Allied 931
Mutual Benefit Group 969
Penn National Insurance Company 979
Frederick Mutual Insurance Company 997
Farmers Mutual of Salem 998
Cincinnati Ins Co 1,017
Travelers 1,019
Horace Mann 1,025
Donegal Insurance Group 1,029
State Auto 1,050
Homesite Insurance Company 1,071
Everett Cash 1,092
Stillwater Insurance 1,098
American Strategic Insurance 1,106
Bankers Insurance 1,122
Allstate 1,139
Ameriprise 1,195
Universal Property and Casualty Insurance Company 1,205
Allianz Auto Insurance 1,225
State Farm 1,232
QBE Insurance 1,269
Selective Insurance 1,324
Erie Insurance 1,327
Hartford 1,354
Kemper 1,360
USAA 1,360
MetLife 1,388
Fireman's Fund 1,389
American Automobile Insurance 1,409
Amica 1,486
Brethren Mutual Insurance Company 1,517
Nationwide 1,704
Encompass 1,732
Chubb 2,230
Assurant 2,367
PURE 2,481

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.

RankCityCountyAverage Rate% Increase vs. MD Avg
1 Ocean City Worcester $1,766 43%
2 Rockville Montgomery $1,713 39%
3 Centreville Queen Anne's $1,632 32%
4 Prince Frederick Calvert $1,613 31%
5 Easton Talbot $1,609 30%

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!

Rockville

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.

Centreville

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.

Easton

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!

RankCityCountyAverage Rate% Decrease vs. MD Avg
1 Cumberland Allegany $649 -48%
2 Oakland Garrett $734 -41%
3 Princess Anne Somerset $856 -31%
4 Hagerstown Washington $930 -25%
5 Salisbury Wicomico $976 -21%

Cumberland

"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.

Oakland

This town of 2,000 sits in the 2nd largest county in the state (Garrett) which makes up Maryland's western most 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

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.

Salisbury

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:

City Average Rate
Annapolis $1,386
Baltimore $980
Bowie $1,480
Cambridge $986
Centreville $1,632
Chestertown $1,251
Columbia $1,579
Cumberland $649
Denton $1,020
Easton $1,609
Edgewood $1,138
Elkton $1,095
Frederick $1,217
Hagerstown $930
Lexington Park $1,375
Oakland $734
Ocean City $1,766
Prince Frederick $1,613
Princess Anne $856
Rockville $1,713
Salisbury $976
Towson $1,013
Waldorf $1,422
Westminster $1,237

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