(Oct. 10, 2014) Ocean City’s homeowners insurance costs are 43 percent more expensive than the state average, according to a recent study conducted by Value Penguin, a personal finance research company.
Maryland is the 20th cheapest area for homeowners insurance in the United States. At the same time, Ocean City homeowners pay an average of $1,766 per year and are number one in the state for highest homeowners insurance.
A major reason for that is obvious: Ocean City residents are paying more for homeowners insurance because of its location. The city is nestled along the Atlantic coast and many properties are within miles of the beach. Large storms and hurricanes come up the coastline bringing damaging wind and rain, which can make homes a liability and dramatically raise the costs to protect.
Brian Quinn, who was the analyst on the study added, “Ocean City’s crime rate is almost three times the national average, which will always drive up the cost of insuring your house and the items in it.”
This is even though the crime rate statistics employ a calculation based on the number of crimes committed as compared to year-round population, rather than take into consideration the multi-million-person visitor population.
“On the plus side, all coastal towns in our studies from South Carolina down to Texas have higher homeowner insurance rates than Ocean City. The rates are very high for Maryland, but lower on the scale when compared to other coastal towns,” said Quinn.
The study looked at one city in each of Maryland’s 24 counties and the rates were obtained from the Maryland Insurance Administration. The most expensive cities in the study for homeowners insurance are Ocean City, Rockville, Centreville, Prince Frederick and Easton. The least expensive are Cumberland, Oakland, Princess Anne, Hagerstown and Salisbury. The entire study is online at http://www.valuepenguin.com/best-cheap-homeowners-insurance-maryland.