Question: I am weighing the financial pros and cons of where to live in the DMV. How does the cost of homeowners insurance vary between Virginia, Washington DC, and Maryland?
Answer: Homeowners insurance has gotten more expensive and guidelines stricter as claims have risen. For buyers choosing between buying a home in Virginia, Washington DC, or Maryland the difference in homeowners insurance costs is worth considering.
I interviewed my go-to insurance provider, Seth Kutner, with ACO Insurance about the differences he sees providing homeowners insurance across the DMV. If you want to reach Seth to discuss your policies or ask questions, you can reach him at [email protected].
Virginia is Less Expensive Than DC, MD
For most properties in the DMV, with standard insurance coverage, Seth finds that the annual premiums in DC and MD are about 10-15% higher than those in VA. Riskier properties with more difficult coverage requirements are often even more expensive in DC and MD than they are in VA.
Condos tend to have similar pricing across the DMV, the major cost differences are generally with townhouse, duplex, and single-family detached properties.
Pricing also varies at a local level, within each state/DC.
More Claims and Consumer-Friendly Laws in DC, MD
Homeowners insurance in DC and MD is more expensive than VA because providers have suffered higher property losses in recent years than in VA, especially related to roofs and non-weather-related water damage. DC has more homes with flat roofs than VA and MD, resulting in more claims due to poor drainage. Older housing stock in DC and MD result in more water back-up claims than in VA.
The Insurance Bureaus for MD and DC have more consumer-friendly guidelines for insurance companies than in VA, causing providers to off-set the stricter guidelines with higher premiums.
Roof Age is a Major Sticking Point
Insurance companies have identified older roofs as a major risk factor and have significantly tightened their guidelines for roof age. In MD and DC, it can be difficult to get a new policy if your roof is 15+ years old (below the life expectancy of many roofs installed in the past 20 years). In VA, the rules are slightly better with insurance companies declining new policies when a roof is 20+ years old.
Non-Weather-Related Water Claims Are Your Enemy
Homeowners should be extremely careful when filing non-weather-related water claims (e.g. sump pump failure or burst pipes) because you risk losing your policy if you have two of these claims in a three year period. It can also be difficult for a homebuyer to secure a new policy.
Any insurance claim you make should be well above your deductible, otherwise, consider paying out of pocket and not notifying your insurance company.
Caution Against Easy Online Insurance
I advise all clients to work through a real, local insurance agent rather than relying on online underwriting. The extra time you’ll spend with a knowledgeable person will ensure you aren’t missing coverage or paying for coverage that doesn’t apply to you. The online process isn’t necessarily less expensive either, it just takes less time.
Additionally, an insurance relationship between you and your insurer also gives you somebody to call for advice on whether to make a claim on something. Just one call into your insurer to ask them about filing a claim can be used against you.
I personally work with and recommend Seth Kutner ([email protected]), with ACO Insurance.
If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].
We have access to the most pre and off-market listings across the DMV of any brokerage and are happy to share what’s available with anybody who asks.
Below are some of our team’s pre/off-market listings, details and additional listings available by request:
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Westover – 4BR/2BA/2,000sqft – Detached Single Family (2000) – 23rd St N Arlington VA 22205
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Green Valley – 5BR/4.5BA/3,000sqft – Detached Single Family (2020) – 24th St S Arlington VA 22206
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Ballston – 4BR/3.5BA/2,400sqft – Townhouse (2008) – N George Mason Dr Arlington VA 22203
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Ballston – 4BR/3.5BA+office/4,000 sqft – Four Townhouses (2026/2027) – 11th St N Arlington VA 22201
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Rosslyn – 2BR/2BA/1,800sqft – Condo (2021) – 1781 N Pierce St Arlington VA 22209
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Rosslyn – 3BR/2.5BA/2,400sqft – Condo (1986) – 1530 Key Blvd Arlington VA 22209
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Williamsburg – 6BR/5.5BA/5,500 sqft – Detached Single Family (2026) – 27th St N Arlington VA 22207
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Yorktown – 6BR/6.5BA/6,000+ sqft – Detached Single Family (2026) – N Greencastle St Arlington VA 22207
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West Springfield (FFX Co) – 4BR/2.5BA/2,100sqft – Detached Single Family (1971) – Riata Ct Springfield VA 22153
