​Attorney General of Maryland ​Anthony G. Brown

Residential Property Insurance

​​​​​​​​​​​The People's Insurance Counsel Division provides this guide to help Maryland residents understand their rights and options regarding residential property insurance. This information will help you make informed decisions about protecting your home and belongings, understand the claims process, and know where to turn if you have problems with your insurance company.

About Insurance Regulation

The Maryland Insurance Administration (MIA) regulates all insurance companies and their representatives in Maryland. The Insurance Commissioner enforces laws passed by the Maryland General Assembly.

What insurance companies must do:

  • File their rates and policy forms with the MIA
  • Follow laws about claim settlements
  • Follow laws about non-renewal or cancellation of policies
  • Set insurance premiums that comply with Maryland laws
  • Not discriminate unlawfully when deciding to accept, renew, or cancel policies

If you have a problem with your insurance company:

  1. You can file a complaint with the MIA
  2. An investigator will check if insurance laws were violated
  3. If no violation is found, in most matters you may request an administrative hearing

View relevant insurance laws

Types of Residential Property Insurance

Homeowner's Insurance

  • For matters covered by your policy such as:
    • Protects you financially if your home is damaged or destroyed due to an unforeseen or catastrophic event
    • Covers your personal belongings
    • Pays for medical expenses if others are injured on your property
    • Covers liability claims if you or family members cause damage or injury to others

Dwelling Insurance

  • For matters covered by your policy such as:
    • Includes coverage for properties not occupied by the owner
    • Covers rental properties
    • Protects structures that don't qualify for homeowner's insurance

Condominium Insurance

  • For matters covered by your policy such as:
    • Covers changes and improvements to your condominium unit's interior
    • Protects your personal belongings
    • Pays for medical expenses if others are injured
    • Covers liability claims if you or family members cause damage or injury to others

Tenant/Renters Insurance

  • For matters covered by your policy such as:
    • Protects personal property inside a rented home or apartment
    • Pays for medical expenses if others are injured
    • Covers liability claims if you or family members cause damage or injury to others
    • Covers additional living expenses (ALE) if you need temporary housing

Flood Insurance

  • Available through FEMA and the National Flood Insurance Program (NFIP)
  • Has limitations: typically doesn't cover waterfront structures like docks or bulkheads
  • Some private insurance companies now offer flood insurance

Important: Standard residential property insurance does NOT cover flood damage.

Additional Resources on Flood Insurance:

Important Note About Recreational Vehicles

Your homeowner’s policy may not cover:

  • Minibikes
  • Motor scooters
  • All-terrain vehicles (ATVs)
  • Boats

Contact your insurance company to check if these items are covered under your homeowner’s policy or if you need separate coverage.

How Your Property is Protected

Types of Coverage

All Risk Coverage

  • Also called "Comprehensive" or "Open Perils" coverage
  • Covers all perils EXCEPT those specifically excluded
  • Even the most comprehensive policy will exclude certain types of loss

Named Perils Coverage

  • Also called "Specified Perils" coverage
  • Only covers perils specifically named in your policy
  • Will still have exclusions for named perils

How Claims Are Settled

Replacement Cost Coverage

  • Pays all necessary expenses to rebuild or repair damaged property
  • Up to your policy limits
  • Minus any deductible

Actual Cash Value Coverage

  • Takes depreciation into account
  • Pays replacement or repair costs minus depreciation
  • Minus any deductible

Required Insurance Notices

Maryland law requires insurance companies to notify you about:

  • Available additional coverage options
  • Possible discounts
  • Deductible options
  • Certain exclusions

Examples of notices:

  • Availability of coverage for water damage from sewer or drain backups
  • Dog breeds not covered by your policy
  • Notice that flood damage is not covered
  • Anti-concurrent causation clause information
  • Other specified insurance matters

Review relevant Maryland statutes

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