The homeowners forms (HO-2 through HO-8), Coverages A through F, and the standard exclusions are covered in the national homeowners guide. Maryland adds a long list of homeowners statutes in Insurance Article Title 19 and § 27-501. They cover required offers and notices, deductibles, claims, and limits on when an insurer may drop or surcharge a homeowner. General Maryland P&C rules, such as cancellation notice periods and the Joint Insurance Association, are in the Maryland property and casualty basics guide.

Required offers and notices

• Optional coverages (§ 19-207). At application, the insurer gives a written list of all optional coverages it offers.
• Flood notice (§ 19-206). At initial purchase, the insurer gives written notice that a standard homeowners policy doesn't cover flood.
• Annual statement (§ 19-205). Each year, the insurer summarizes coverages and exclusions and states whether structures and contents are paid at replacement cost or actual cash value.
• Anti-concurrent causation (§ 19-215). Insurers whose policies contain an ACC clause send an annual notice describing it.
• Sewer and drain backup (§ 19-202; COMAR 31.08.14). At application and each renewal, the insurer must offer coverage in writing. The offer includes limits equal to the dwelling, other structures, contents and loss-of-use limits.
• Dog breeds (§ 19-206.1). If the policy excludes losses caused by specific dog breeds, the insurer gives written notice at application and each renewal.
• Family child care (§ 19-203). Registered family child care providers must be offered at least $300,000 of liability coverage for child care activities.
• Storm mitigation (§ 19-210). Insurers must offer at least one actuarially justified discount for storm-mitigation improvements, such as shutters or roof tie-downs.

Deductibles

Hurricane deductibles (§ 19-209):

• A mandatory percentage hurricane deductible applies only from when a hurricane warning is issued for any part of Maryland until 24 hours after the last warning ends.
• An underwriting standard requiring a hurricane deductible over 5% of Coverage A must be filed 60 days before use.

Percentage deductibles (§ 19-209.1). The insured gets a statement about the deductible at issue and at each renewal.

Claims

• Additional living expenses (§ 19-208). ALE coverage may not be limited to less than 12 months.
• Medical payments (§ 19-204). A policy that pays medical expenses for accidents pays those incurred within 3 years.
• Replacement cost holdback (§ 19-213):
  • The insured gets at least 2 years after the loss to claim the difference between ACV and replacement cost for completed repairs.
  • The insurer may require notice of intent to repair within 180 days.

Limits on cancelling, nonrenewing or surcharging

Midterm cancellation. After the underwriting period, a homeowners policy may be cancelled only for:

• fraud or misrepresentation
• public-safety threats
• increased hazard
• nonpayment
• conviction for arson (§ 27-602)

An insurer may not cancel, nonrenew, refuse or surcharge a homeowner because of:

• a claim more than 3 years old, except fraud or arson (§ 27-501(d))
• an inquiry about coverage that didn't result in a claim (§ 27-501(p))
• the insured not carrying their auto insurance with the same company. Bundling discounts are allowed (§ 27-501(r)).
• credit history. Homeowners insurers may not use it to underwrite, cancel, nonrenew or rate (§ 27-501(e-2)).

Weather claims (§ 19-214). An insurer may cancel or nonrenew for weather claims only if there were three or more in the preceding 3 years. One is enough if the insured ignored written notice to make specific repairs.

Renewal premium notice (§ 27-607). At least 45 days before renewal, the insurer sends the renewal and expiring premiums.

Common exam traps

• Insurers must offer sewer backup coverage, at application and each renewal.
• ALE can't be limited to less than 12 months.
• A hurricane deductible applies from the warning until 24 hours after it ends.
• Weather claims justify nonrenewal only at three in three years.
• Credit history can't be used for homeowners insurance.
• Arson conviction is a midterm cancellation reason specific to homeowners.