Homeowners Insurance in Frederick Maryland

Homeowners Insurance – Frederick Maryland

Balderson Insurance is a Maryland based independent insurance broker focused on providing premium Homeowners Insurance Homeowners Insurance Frederick MDin Frederick Maryland. We understand that each Maryland homeowner has unique circumstances. We work with many of the top insurers in the state to find you the best MD home insurance to suit your needs. For questions or to discuss your homeowners insurance needs, call us at (301) 874-0772.


How much homeowner’s coverage is needed in Maryland? You will need enough to cover:

  • Structure: The cost to rebuild your home in the event of a total loss
  • Personal Property: The cost to replace your personal possessions inside the home
  • Living Expenses: The cost to live in a temporary location while your home is being repaired or rebuilt after a covered loss
  • Liability: Bodily injury to others on your property and/or caused by you or your family members



When insuring for the structure of the home, the important figure to keep in mind is the amount needed to rebuild the house based on current construction costs. This amount will not necessarily be equivalent to the current real estate value because that would include the land. In addition, this amount will not be the same as your current home mortgage balance (though the bank will require you to carry at least enough to pay off the mortgage in the event of a total loss).

You can quickly estimate the cost to rebuild your home by multiplying the total square footage by the current cost per square foot to build in your local area. To find out the cost per square foot, contact a local construction company, realtor, insurance agent, or your local builder’s association.

In addition to local construction costs and the number of square feet in the home, some other factors need to be considered to get a more accurate reading of your home rebuilding cost. These include:

  • Home Style
  • Exterior Type
  • Type of Roof/Materials Used
  • Number of Bedrooms, Baths and Other Rooms
  • Special Features (Fireplaces, Exterior Trim, etc.)
  • Additional Structures (Detached Garages, Sheds, etc.)
  • Home Customizations
  • Home Improvements
  • Age of the Home


A replacement cost policy will cover repairs or replacement of damage to the structure using materials of similar kind and quality. Covered losses in a basic Maryland homeowner insurance policy include:

  • Fire
  • Windstorm
  • Theft
  • Hail
  • Lightning
  • Vandalism


Damage caused by a lack of routine maintenance is not covered in the policy. In addition, earthquake and flood insurance is not part of a standard homeowners policy and must be purchased separately.

Here are some other issues to keep in mind when deciding on the right MD homeowner policy to fit your needs:

  • Natural Disasters: When major storms, hurricanes, and other disasters hit, a spike in demand can cause rebuilding costs to jump. Guaranteed or extended replacement cost coverage can protect you in these instances, providing an additional amount (in most cases 20%) above the policy limits, or full guaranteed replacement cost, to protect you from major disasters.
  • Building Codes: Most states update their building codes frequently, which can cause your replacement costs to increase. Many insurers offer an endorsement/rider to cover such increases.
  • Inflation: The cost of materials rise most years because of inflation. Inflation guard can cover you for these increases.
  • Older Maryland Homes: If you have a home that was constructed in a different era, the insurer may not offer a replacement cost policy because of the high cost to rebuild the home to the way it was when first constructed. In these cases, you may need an alternative such as a modified replacement cost policy.


Personal Property

Most insurers offer coverage for your personal property at between 50% and 75% of your dwelling coverage. To determine if this is enough, take a full inventory of the property in your home and estimate its value. You will probably want to consider replacement value (the cost to replace a lost or destroyed old item with a brand new one) rather than actual cash value. In addition, to list special items such as jewelry, additional riders can be added to the policy.


Living Expenses

Cost of living outside your home during covered repairs or replacements can be very expensive. The living expenses portion of your Maryland homeowner policy typically covers for up to 20% of your dwelling coverage for expenses such as hotels, meals, etc. This portion of your policy also provides coverage for tenants that may be renting a part of your dwelling.



Every homeowners insurance policy in Maryland must have liability coverage. This portion of the policy provides coverage for injuries to other parties incurred on your property and/or caused by you or other family members. This will also cover you in case your pets injure a third party. Most policies offer a minimum liability coverage level of $100,000. However, it is recommended that this figure be bumped up to $300,000 or $500,000. Consider an umbrella policy if you need liability limits beyond what homeowner insurance can provide.

For questions or to discuss your homeowners insurance needs, call us at (301) 874-0772.

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