Homeowners Insurance in PA and MD

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Homeowner Insurance

There are few possessions more valuable to us than our homes. It is our homes that provide us with a sense of security and stability. It's where we love to gather with our family and friends. It's also one of your largest assets. That's why it's so important to have the peace of mind that comes with knowing we have the right homeowners insurance should disaster strike. 

Read on to learn what protection homeowners insurance provides, the most common hazards you face as a homeowner, the cost of homeowners insurance, how to get homeowners insurance in PA and MD, and the importance of creating a home inventory. 

Keller-Brown Insurance is here to answer the most common questions we receive from clients, such as "What do I need to know about homeowners insurance in PA?",  "Where do I buy Maryland home insurance?" and "How much does it cost for PA home insurance?".

What is homeowners insurance?

Homeowners insurance protects your property—both your house and the possessions in it—from financial losses due to fire, wind, theft, and a whole lot more. Homeowners insurance also covers you for property damage or injury to others for which you or other family members may be held legally liable. 

Although it may be hard to imagine your home being damaged or destroyed, it happens to millions of homeowners every year. Homeowners insurance gives them the means to rebuild. 

Property damage is the No. 1 reason homeowners file claims. According to the Insurance Information Institute, a nonprofit organization that exists to improve public understanding of insurance, property damage, including theft, accounted for a whopping 97.2 percent of homeowners insurance claims in 2019 (latest data available). 

Broken down, the property damage statistics look like this: 

• Wind and hail (34.3 percent)

• Water damage and freezing (29.4 percent)

• Fire and lightning (25.1 percent)

• Theft (1.0 percent)

• All other property damage (7.4 percent) 

A standard homeowners insurance policy provides coverage for four areas: 

• Your home's physical structure

• Personal belongings inside the home

• Liability protection

• Additional living expenses if you need to live off-site during repairs or rebuilding 

Coverage for the structure of your home 

If your home is damaged or destroyed, this coverage pays to repair or rebuild it if the event was caused by fire, hail, lightning, or other disasters listed in your policy. You can also choose to have detached structures including garage, tool sheds and gazebos insured.

Coverage for your personal belongings 

Furniture, clothes, TVs and stereos, art, collectibles, musical instruments, workout equipment, and more are covered in this category. Conducting a home inventory is a great way to ensure the proper amount of insurance coverage.

Liability coverage 

This coverage provides legal protection in case of lawsuits for bodily injury or property damage for which you or other people in your household are legally accountable. It also pays for damage caused by your pets. 

The no-fault medical portion of this coverage means if a visitor is injured in your home or while on your property, medical bills will be paid by the insurer even if you are not legally responsible. Medical bills for your own family or pet, however, are not covered. 

Types of liability claims covered include:

• Dog bites

• Falling trees

• Food poisoning

• Guest injuries from a swimming pool, hot tub, pond, trampoline, etc

• Intoxicated guests

• Injured domestic workers

• Legal costs

• Libel and slander

• Lost wages

• Medical bills for visitors

• Neighborhood damage

• Personal liability coverage away from home (for example, running into a pedestrian with your bike)

• Property damage

• Serving on a nonprofit board

• Slips and falls

One consideration, the cost to increase your homeowner's liability insurance coverage--say from $300,000 to $500,000--is often minimal, but you will gain thousands of dollars worth of additional liability protection and defense. 

Additional living expenses (ALE) 

If you cannot live in your home due to damage from an insured disaster, ALE pays the costs of living away from your property while your home is being rebuilt. Temporary housing, restaurant meals, and other standard living expenses are included.

How much is homeowners insurance in PA and MD?

The cost of homeowners insurance in PA and MD varies based on a number of factors. These include:

• Geographic location (some places are more prone to natural disasters)

• The estimated cost to rebuild your home

• Access to and quality of local fire protection

• Year built, and updates to plumbing, roofing, wiring, and heating

• Roof condition

• Construction quality

• Special features such as hot tubs and swimming pools. 

• Limits, such as your building limit and liability limit

• Deductible

• Type of pets you have (horses cost more, and some dog breeds are uninsurable)

The Insurance Information Institute offers this simple guideline: Purchase enough coverage to rebuild your home. Due to inflation and the rising costs of building materials, the amount of money needed to rebuild your home will increase over time. That's why it is a good idea to contact your agent periodically to review your policy and make sure you have the right amount of coverage. 

Also, if you have made any home improvements such as finishing the basement or adding on a bathroom, let your insurance agent know so they can adjust your coverage accordingly. That provides you peace of mind of knowing those improvements will also be covered should anything happen. Some home improvements, like installing a security system, can actually lower your premiums.

Another way to lower the premium for homeowners insurance in PA or MD is by choosing a higher deductible. That means you will pay less for the insurance policy, but if you have a claim, you will pay more out of pocket before the insurance kicks in. The standard deductible is $500 but you can choose a deductible of $1,000, $2,500, or even higher. Combining your home and auto insurance with one company can also lower your insurance by making you eligible for a multi-policy discount. Visit our personal car insurance page for more information on the auto insurance coverages we offer. 

Each insurance company sets its own rates. As an independent insurance agency working with several top-rated insurance companies, Keller-Brown Insurance Services will match you with an insurance company. We will work to find you Pennsylvania or Maryland homeowners insurance at a price point you can afford. 

Whether you are looking for homeowners insurance in Maryland or Pennsylvania, our insurance agents can assist you in tailoring your homeowners insurance policy to your needs. We will help you determine what coverage you need, as well as the limits and deductible amounts that are right for your situation. 

If you are not yet a homeowner but considering a purchase, we can estimate the cost of insurance for the home. And remember, while you may buy a home warranty when you purchase your home, that covers mechanical breakdowns like plumbing and electrical. The home's structure is not covered. 

Your family's unique circumstances will also impact the cost. For example, while personal property is covered under your standard homeowners policy, there are limits to the coverage. If you have an expensive wedding ring or piece of art, you may want to purchase a personal property endorsement or floater to have the items insured for their officially appraised value. 

Liability limits generally start around $300,000. If you have significant assets, an umbrella or excess liability policy might be a good choice. Umbrella insurance covers claims against you and other household members that exceed your homeowners or auto policy. 

For example, if a guest slips in your home and hits their head, medical bills can easily exceed the $100,000 of liability coverage on your homeowners policy. Once that is exhausted, the umbrella policy will cover you up to the limit of your policy. Umbrella insurance coverage starts at $1 million and policies cost about $150 to $300 a year. This article from the Insurance Information Institute explains why you should consider an umbrella liability policy.

An additional consideration: If you work from home, it's important to know that homeowners insurance was not meant to cover most business uses of your house, although some policies offer partial coverage. 

One way to lower your insurance premium for homeowners insurance in PA or MD is to make your home safer or more claim resistant. For instance, adding a new roof or updating your plumbing system may result in a reduction of your premium.

Factors that insurers cannot use to increase your premium include your credit history, your claims inquiries (inquires about a claim if the inquiry does not result in payment of a claim), and whether you have been the victim of a violent crime. 

Is homeowners insurance required in MD or PA?

Homeowners insurance is not a requirement by the state of Maryland or the state of Pennsylvania. However, if you have any type of mortgage on your home, it is likely that your contract stipulates that you must have a homeowners policy in effect. 

A lender may also request that the policy name the mortgage holder as an additional insured in order to protect their financial interest in your home. It's important to note that you are not obligated to purchase insurance from the company recommended by the lender. We will help find the company that best matches your homeowners insurance needs in PA or MD. 

The Pennsylvania Insurance Department explains it this way: "Homeowners insurance is not mandatory in Pennsylvania, but most banks or lenders will require you to cover your home for at least the amount of the mortgage." 

Maryland's Insurance Administration, an independent state agency that regulates Maryland's insurance marketplace says, "Even if you do not have a mortgage on your home, you may still want to purchase a homeowners insurance policy to protect you from financial harm in the event of a covered loss." 

The importance of home inventories

Less than half of homeowners said they prepared an inventory of their possessions to help document losses for their insurers, according to polls conducted by the Insurance Information Institute. An up-to-date inventory is important for three reasons. 

First, it provides our Keller-Brown insurance agents with an accurate list of your possessions so we can help you make an informed decision about the amount of coverage you need. 

Second, should something happen, it makes filing a claim as simple as possible. Listing damaged property on a claims form is challenging, especially when you're trying to remember items stashed in your basement or tucked in your attic that you haven't seen for years. Knowing everything is documented will make the process easier. 

Third, should disaster strike, you may qualify for financial assistance or a tax break if you can substantiate your financial losses. 

Check out our home inventory suggestions to help you prepare for the unexpected. 

Do you have questions about Homeowner Insurance?

Contact an insurance agent at Keller-Brown Insurance Services today to answer any questions about Homeowner Insurance or for a free review and insurance quote for Homeowner Insurance. And don't forget, as an independent insurance agency, we represent several top rated insurance companies. We have the flexibility to help you find coverage at competitive premiums for business, home, auto, and more.