Maryland, a state with over 6 million people, has 2 climates. It is continental in the highland west with temperature records from -40 degrees to more than 100 degrees. The east has a humid subtropical climate influenced in large part by Chesapeake Bay and the Atlantic Ocean.
Spring usually brings mild climates across most of the state of Maryland. The mid Atlantic can bring severe weather such as flooding and tornadoes. Flash floods are caused by heavy rainfall in the state, which averages around 40 inches a year. Maryland is below the nation average and only has on average 10 tornadoes reach the state annually.
Summers in Maryland can bring extreme heat, introducing thunderstorms and lightning storms. Lightning does not have to directly strike properties in order to cause lasting damage. Power outages are common that lead to claims for homeowners that not only affect the exterior of the home but can lead to wiring problems and prolonged outages that lead to food spoilage which is common for homeowners during severe storms.
Winters in the state can be unpredictable. Maryland is hit by severe cold spells, heavy snows, ice and blizzards. Maryland has a wide variation of annual snowfall totals with as little as 26 inches per year in Hagerstown to 104 inches around Deep Creek Lake. These unpredictable conditions lead much of the states to be deemed as high risk for weather related homeowners insurance claims. Many of these issues can be mitigated by winterizing homes before the winter. This mitigation will also help avoid excessive water claims due to the freezing pipes during the extreme cold spells.
While overall Maryland has a property crime rate that is lower than the national average, some areas have a much higher rate. These areas have been deemed as high risk by many homeowners insurance companies which can cause difficulties in obtaining quality, affordable coverage. Residents in these areas are encouraged to mitigate the potential for claim in these high risk areas by installing alarm systems or getting cameras.
The Maryland Joint Underwriting Association (MJIU), commonly referred to as the Maryland FAIR Plan, is readily available for those residential or commercial property owners that are unable to buy insurance in the private market. This often due to filing excessive home insurance claims or simply based on the geography the dwelling is located being deemed as 'high risk". Every applicant is encouraged to seek coverage in the private market before applying to the FAIR Plan as it is considered to be a market of last resort.
Residents or Maryland are fortunate to have a thriving private marketplace as well as a state FAIR Plan. Many insurance companies have responded to loss trends with different deductibles, surcharges or credits for consumers, not only based on the age of the roof, but now the type of roof and materials. While the market moves on, consumers will find themselves more and more looking toward mitigating risk both to protect their futures and their insurance premiums.