Key Takeaways
- Maryland homeowners policies follow ISO standard forms with state-specific endorsements and consumer protections
- The Maryland Insurance Administration (MIA) regulates all insurance transactions and protects consumer rights
- Maryland law requires insurers to provide replacement cost estimates and clear coverage explanations
- Flood insurance is not included in standard policies and must be purchased through NFIP or private insurers
- Maryland has specific claims handling requirements including 15-day acknowledgment and 45-day investigation periods
Maryland Homeowners Insurance
Maryland follows national homeowners insurance standards with state-specific requirements enforced by the Maryland Insurance Administration (MIA).
Standard Policy Forms
HO-3 Special Form (Most Common)
| Coverage | Type | Typical Limit |
|---|---|---|
| A - Dwelling | Open perils (special) | Replacement cost |
| B - Other Structures | Open perils | 10% of Coverage A |
| C - Personal Property | Named perils | 50-75% of Coverage A |
| D - Loss of Use | ALE coverage | 20-30% of Coverage A |
| E - Personal Liability | Occurrence basis | $100,000 - $500,000 |
| F - Medical Payments | No-fault coverage | $1,000 - $5,000 |
Other Maryland Homeowners Forms
| Form | Property Coverage | Perils |
|---|---|---|
| HO-2 Broad | Dwelling & contents | Named perils only |
| HO-4 Renters | Personal property only | Named perils |
| HO-5 Comprehensive | Dwelling & contents | Open perils for both |
| HO-6 Condo | Unit improvements, contents | Named perils |
| HO-8 Modified | Older/historic homes | Actual cash value |
Maryland Insurance Administration (MIA) Requirements
Consumer Protections
The MIA enforces specific requirements for Maryland homeowners insurance:
- Rate Approval: Prior approval required for rate changes
- Form Filing: All policy forms must be approved before use
- Disclosure Requirements: Clear explanation of coverage limits and exclusions
- Replacement Cost Estimates: Insurers must provide dwelling value estimates
- Annual Review Notice: Policyholders must receive coverage adequacy notices
Claims Handling Standards
Maryland imposes strict claims handling timelines:
| Requirement | Timeline |
|---|---|
| Acknowledge claim receipt | Within 15 working days |
| Begin investigation | Promptly after acknowledgment |
| Investigation completion | Within 45 days |
| Payment after settlement | Within 15 days of agreement |
| Denial explanation | Written, with specific reasons |
Maryland-Specific Coverage Considerations
Windstorm and Hurricane
- Coastal areas may have separate windstorm deductibles
- Percentage deductibles (1%-5% of dwelling value) common
- Hurricane deductibles triggered by National Weather Service declarations
- Clear disclosure of deductible type required
Flood Coverage
Maryland has significant flood risk areas:
- Not covered by standard homeowners policies
- National Flood Insurance Program (NFIP) available through MIA
- Private flood insurance options available
- Mortgage lenders require flood insurance in high-risk zones
Exam Tip: Maryland requires insurers to acknowledge homeowners claims within 15 working days and complete investigations within 45 days. These timelines are strictly enforced by the MIA.
Within how many working days must Maryland insurers acknowledge receipt of a homeowners insurance claim?
Which Maryland agency regulates homeowners insurance policies and protects consumer rights?
What type of coverage does an HO-3 policy provide for the dwelling structure?