HomeHomeowners insurance
Homeowners Insurance in Maryland
A homeowners policy protects the house, everything in it, and you, if someone is hurt on your property. The details decide how well it works when you need it, so I go through them with you before you buy.
What a homeowners policy covers
Most owner-occupied houses in Maryland are insured on an HO-3 policy, the standard homeowners form. It's built from six parts:
| Coverage | What it pays for |
|---|---|
| Dwelling (Coverage A) | Repairing or rebuilding the house after a covered loss such as fire, wind, hail or a burst pipe. |
| Other structures (B) | Detached garages, sheds and fences. |
| Personal property (C) | Furniture, clothing, electronics and your other belongings. |
| Loss of use (D) | Extra living costs, like a rental and meals out, while the house is being repaired. |
| Personal liability (E) | Injuries or property damage you're legally responsible for, plus the cost of defending you. |
| Medical payments (F) | Smaller medical bills for guests hurt at your home, regardless of fault. |
The gaps I check on every quote
Rebuild cost, not market value
Your dwelling limit should reflect what it would cost to rebuild the house today. That number has nothing to do with the sale price, school district or land value, and in older Baltimore-area homes it can be higher than people expect. I run a reconstruction estimate for every quote.
Water backup
Water that backs up through a drain or sewer line, or overflows from a sump pump that fails, isn't covered unless you add it. Maryland insurers have to offer this coverage in writing when you apply and at every renewal, so if you don't have it, you may have declined it without noticing. For a finished basement it's one of the most important additions you can make.
Flood
No standard homeowners policy covers flood. If you're near a creek, the bay or a low-lying street, I'll quote flood coverage separately through the National Flood Insurance Program or a private flood carrier.
Valuables
Jewelry, watches, art and collectibles have low built-in limits for theft. Listing them on the policy individually gives them their own coverage amount and usually broader protection.
Liability
Liability is the part of the policy that protects your savings and future income if you're sued. Higher limits usually cost little compared to the protection they add. If your assets have grown, an umbrella policy adds a larger layer on top of your home and auto.
The deductible
A higher deductible lowers your premium. I usually suggest the highest deductible you could comfortably pay out of pocket, because small claims can cost more in future premiums than they pay out.
Maryland rules worth knowing
- Your credit isn't a factor. Maryland doesn't allow homeowners insurers to use your credit history to price, write, cancel or non-renew your policy.
- Hurricane deductibles. Some policies carry a separate hurricane deductible, figured as a percentage of your dwelling coverage instead of a flat dollar amount. In Maryland it applies only from the time the National Hurricane Center issues a hurricane warning for any part of the state until 24 hours after the warning ends. Your insurer has to send a notice explaining it at every renewal.
- Notice before non-renewal. An insurer has to give you 45 days' written notice before it cancels or non-renews a homeowners policy, or 10 days for non-payment. That's enough time to find replacement coverage if you act quickly.
How I shop it
I quote homeowners coverage with carriers including Travelers, Liberty Mutual, Nationwide, The Hartford and Selective, and I compare it alongside your auto insurance, since a home and auto discount can change which carrier comes out ahead. When it helps, I line up your home and auto renewal dates so everything gets reviewed together.
Frequently asked questions
Is homeowners insurance required in Maryland?
No Maryland law requires it, but your mortgage lender will require it until the loan is paid off. After that it's optional, and it's still the main thing standing between you and the cost of rebuilding after a fire or a major liability claim.
Does homeowners insurance cover flooding?
No. Standard homeowners policies exclude flood, meaning surface water from outside such as a storm surge or an overflowing creek. Flood coverage is a separate policy through the National Flood Insurance Program or a private flood insurer. NFIP policies generally take effect 30 days after purchase, so it has to be in place before a storm is forecast.
Does homeowners insurance cover a sewer backup or sump pump failure?
Not on a standard policy. Water that backs up through a drain or sewer line, or overflows from a failed sump pump, is excluded unless you add water backup coverage by endorsement. If you have a finished basement, it's one of the first things I check.
How much dwelling coverage do I need?
Enough to rebuild the house at today's labor and material costs, which can be very different from what it would sell for. Land value doesn't belong in the number at all. I run a reconstruction cost estimate on every quote so the limit is based on the house you actually have.
Will filing a claim raise my premium?
It can. Claims history is one of the factors carriers use when they price and renew policies. That's one reason I usually suggest a deductible high enough that you wouldn't file for a small loss you could comfortably pay yourself.
My homeowners insurance is being non-renewed. What should I do?
Call me as soon as the notice arrives. Maryland requires insurers to give 45 days' written notice before non-renewing a homeowners policy, which is usually enough time to find new coverage without a gap. You also have the right to ask the Maryland Insurance Administration to review the non-renewal.
Can I still get coverage if my roof is older?
Usually, yes, but fewer carriers will compete for it, and some limit how they pay for roof damage on older roofs. If you know the year the roof was replaced, tell me up front and I'll quote the carriers that fit.
Related coverage
Want a second opinion on your coverage?
Send me your current declarations page. I'll tell you honestly whether you can do better on price, coverage or both.