Maryland Homeowners Pay Some of the Lowest Insurance Costs in the Country, But Prices Are on the Rise

Maryland homeowners pay some of the lowest insurance costs in the Mid-Atlantic, even as insurance premiums rise nationally.

While storm-prone Gulf Coast states face affordability crises, new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that Maryland homeowners are largely insulated from the steepest price hikes.

Maryland’s Insurance Costs Stay Affordable

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Maryland homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage average the same $1,000–$1,499. Overall statewide costs also fall into the $1,000–$1,499 range.

And yet, while still on the low side of things, a report from the Consumer Federation of America (CFA), titled “Overburdened: The Dramatic Increase in Homeowners Insurance Premiums and Its Impacts on American Homeowners,” revealed that premiums rose in Maryland by an average of 25% from 2021 to 2024.

Maryland has 1,628,167 insured homeowner households in total—1,139,840 with a mortgage and 488,327 without. Among mortgaged owners, 104,225 pay less than $100 annually and 72,248 pay $4,000 or more. Among those without a mortgage, 74,300 pay less than $100 and 23,904 pay $4,000 or more.

When compared with nearby states, Maryland’s costs are low. Delaware homeowners with a mortgage average $1,000–$1,499, but those without typically pay less, at $800–$999. Pennsylvania shows a similar split, with mortgage holders paying $1,000–$1,499 and non-mortgaged homeowners paying $800–$999. Virginia averages $1,000–$1,499 for both groups, while the District of Columbia is also in the $1,000–$1,499 bracket. New Jersey households fall into the same category. Compared with this regional cluster, Maryland remains solidly affordable, especially relative to southern states like Florida.

Climate Risks and Regional Exposure

The Realtor.com 2025 Climate Risk Report highlights how climate exposure directly drives insurance costs. Miami, Florida tops the list, with average premiums of $22,718 annually, or 3.7% of median home value. Other Florida metros like Cape Coral and Tampa also rank among the most expensive.

By contrast, Maryland does not appear on the list of metros with the steepest insurance burdens, nor does it rank among the areas with the greatest flood or hurricane exposures. Still, as a Mid-Atlantic coastal state, Maryland faces risks of flooding and storm surges, particularly around the Chesapeake Bay. These hazards, though serious, have not yet driven statewide costs to unaffordable levels.

A National Affordability Challenge

Maryland’s modest premiums contrast with the growing affordability crisis elsewhere. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half of respondents said they had already faced difficulties obtaining or renewing coverage.

These pressures are reshaping homebuying behavior nationwide. Nearly 30% of homebuyers said they had completely changed their target areas due to insurance concerns, while another quarter said they had overhauled their strategies altogether. Even more concerning, 58% of homeowners said they would consider dropping coverage altogether if costs rose too high, with younger generations the most likely to take that risk.

For now, Maryland homeowners enjoy affordable coverage compared with national hot spots. But as climate risks expand along the East Coast, even states with relatively stable costs may see pressure on premiums in the years ahead.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.