Maryland homeowners are grappling with a significant uptick in insurance premiums, a trend that has forced families to rethink budgets as costs climb nationwide. A new report from the Consumer Federation of America (CFA), titled “Overburdened: The Dramatic Increase in Homeowners Insurance Premiums and Its Impacts on American Homeowners,” reveals that premiums rose by an average of 24% across the U.S. from 2021 to 2024. In Maryland, the increase averaged 25%, adding pressure to residents already navigating rising living expenses.
The CFA study, released on April 1, 2025, analyzed data from the six largest insurance companies across nearly every U.S. ZIP code from 2021 to 2023, with projections for 2024. “We found that insurance companies increased premiums in 95% of all ZIP codes across the United States from 2021 to 2024,” said Sharon Cornelissen, CFA’s director of housing and a lead author of the report. For a typical Maryland homeowner with a $350,000 home and a mid-tier credit score, this translates to an additional $648 annually by 2024 compared to 2021, aligning with the national average increase.
Doug Heller, CFA’s director of insurance and a co-author, called the findings “unprecedented.” He pointed to severe weather as a key driver, with Maryland seeing its share of storms, including tornadoes and hurricanes that have battered the region in recent years. “As these prices become more and more intolerable, we are deeply concerned that some will go underinsured and accept lower-quality coverage that will leave them unable to rebuild or repair if disaster strikes,” Heller said. The state’s exposure to coastal risks, particularly along the Chesapeake Bay and Atlantic shoreline, compounds the issue, according to the report.
In Maryland, the average annual premium for a typical homeowner reached $3,303 by 2024, up from $2,655 in 2021, per CFA’s data. This 25% jump outpaced inflation, which rose by about 13% over the same period, based on U.S. Bureau of Labor Statistics figures. The report attributes the surge to rising construction costs, climate-driven disasters, and insurers’ reliance on unregulated global reinsurance markets. Maryland’s premiums, while below the national extremes seen in states like Florida ($9,462 annually), still reflect a growing burden.
Cornelissen warned of broader impacts. “Homes will become harder to sell, and property values will decline in those places that are most impacted by high insurance premiums,” she said. This could affect Maryland communities, especially in flood-prone areas like Annapolis or Crisfield, where insurance costs may deter buyers. The CFA report notes that 95% of Maryland ZIP codes saw increases, with some areas likely exceeding the state average, though specific county-level data was not detailed.
Heller addressed potential economic factors, including tariffs. “There is no question that if the insurance companies find that the rebuilding costs are increased due to tariffs, we policyholders, we Americans, will feel that increase on next year’s premiums,” he said. With potential trade policy shifts looming, Marylanders could face additional hikes in 2026.
To mitigate costs, Heller offered practical advice. He urged homeowners to maintain high credit scores, shop around for quotes, and explore state programs offering grants—up to $10,000 in some states—for weather-resistant upgrades like reinforced roofs. Maryland’s Department of Natural Resources has promoted similar resilience initiatives, though specific grant details vary by locality. He also cautioned against “actual cash value” policies, which are cheaper but reduce payouts by factoring in depreciation. “If you have a 15-year-old roof that costs $20,000 to replace, they might only pay you $4,000,” Heller explained, illustrating the risk of underinsurance.
The report calls for policy changes, including better oversight of rate hikes by state insurance departments and a federal reinsurance backstop to stabilize costs. Maryland’s Insurance Administration, which regulates rates, has not yet commented on the CFA findings. As premiums climb, the state’s homeowners face a balancing act between coverage and affordability.