Centreville's charm lies in its colonial heritage and Eastern Shore character. As the county seat of Queen Anne's County, this small town of about 4,760 residents offers affordable housing, historic architecture, and easy access to the Chesapeake Bay. But if you're buying a home here, you need to understand how these same features affect your insurance needs. From flood risks along the Bay's 414-mile county coastline to the unique considerations of insuring historic properties, Centreville homeowners face specific challenges that directly impact coverage and costs.
The good news? Maryland's average home insurance rates sit below the national average. The challenge? Rates have jumped 26.3% since 2023, and some major insurers are pulling out of coastal Maryland markets altogether. Here's what you need to know to protect your Centreville home.
What Drives Home Insurance Costs in Centreville
Maryland homeowners pay an average of $1,945 per year for home insurance, which is significantly less than the national average of $2,601. But your actual rate depends on several factors unique to Centreville's location and housing stock.
Your home's age matters enormously here. Centreville has significant historic architecture, including colonial-era homes with original construction methods. While these properties have undeniable character, they cost more to insure because replacement materials are expensive and specialized contractors are harder to find. A 1780s farmhouse requires hand-hewn beams and period-appropriate materials that your standard policy's replacement cost coverage might not fully account for.
Distance from the Chesapeake Bay is another major factor. Queen Anne's County has over 414 miles of coastline, and properties closer to water face higher premiums due to increased risk of storm surge, coastal flooding, and wind damage from hurricanes. Even if you're not directly on the water, Centreville's low-lying topography, poor drainage, and high seasonal water tables create flooding potential throughout the area.
Your home's value also plays a role. Centreville's median home value sits around $400,000, up 6% year-over-year. As home values rise, so does the cost to rebuild them, which increases your coverage limits and premiums. With the average household income in Centreville at $107,950, most homeowners can afford adequate coverage, but you'll want to shop around since rates between insurers can vary by thousands of dollars annually.
Flood Risk: The Biggest Insurance Blind Spot
Here's what catches most Centreville homeowners off guard: standard home insurance doesn't cover flood damage. None of it. Not from heavy rain, not from storm surge, not from the rising water table. And Queen Anne's County has a serious flood problem.
The county faces moderate flood risk over the next 30 years, with 3,345 properties having greater than 26% chance of severe flooding. That's 13% of all properties in the county. Between 1960 and 2019, sea levels near Queen Anne's County rose roughly 0.5 feet, leading to more frequent coastal flooding. The county's 29.2 square miles of water area, combined with low-lying topography and poor drainage, means flooding doesn't just threaten waterfront homes—it threatens homes throughout Centreville.
You need separate flood insurance through the National Flood Insurance Program or a private insurer. If you have a mortgage and you're in a high-risk flood zone, your lender will require it. But even if you're not in a designated flood zone, consider buying it anyway. About 25% of flood claims come from moderate-to-low-risk areas, and flooding is likely to impact day-to-day life in this community over the coming decades.
Don't wait until storm season. NFIP policies have a 30-day waiting period before coverage takes effect. Once a storm is named and heading your way, it's too late to buy protection for that event.
Coverage Gaps You Can't Ignore
Beyond flood insurance, Centreville's location near the Chesapeake Bay creates several other coverage considerations that standard policies don't address well.
Water backup coverage is essential. As sea levels rise and storm intensity increases, sewer and drain backups are becoming more common. Water backing up through your drains isn't covered under standard policies—you need to add this endorsement specifically. It typically costs $50-100 per year and covers water that enters through sewers, drains, or sump pumps.
Saltwater intrusion is another Bay-area concern. Properties near the water can experience corrosion from salt air and groundwater, which damages HVAC systems, plumbing, and structural elements. Standard policies often limit coverage for gradual damage or corrosion, so review your policy's language carefully and discuss options with your agent.
For historic homes, you'll want guaranteed replacement cost coverage rather than actual cash value or standard replacement cost. Guaranteed replacement cost pays to rebuild your home even if costs exceed your policy limits—critical when you're dealing with custom millwork, specialized materials, or hard-to-find craftsmen. Some insurers also offer extended replacement cost, which adds 25-50% to your dwelling coverage limit.
Hurricane deductibles are standard in Maryland policies. Unlike your regular deductible (typically $500-$2,000), hurricane deductibles are percentage-based—usually 1-5% of your dwelling coverage. On a $400,000 home with a 2% hurricane deductible, you'd pay $8,000 out of pocket before insurance kicks in. Know what your hurricane deductible is and make sure you have the cash reserves to cover it.
The Insurance Availability Crisis
Here's something most Centreville homebuyers don't realize until closing approaches: getting home insurance in coastal Maryland is getting harder. State Farm, one of the largest insurers in the country, stopped writing new homeowners policies in coastal Maryland as of 2024. They're not alone—insurers nationwide are pulling back from coastal markets due to rising hurricane and flood losses.
This doesn't mean you can't get coverage, but it does mean you need to start shopping early and be prepared to compare multiple carriers. Don't wait until a week before closing to get insurance quotes. Start at least 30-45 days before you need coverage, and get quotes from at least three different insurers. Regional carriers familiar with Eastern Shore risks may offer better rates and coverage than national companies.
If you're buying a historic home or a property near the water, consider working with an independent insurance agent who represents multiple companies. They can help you navigate the increasingly complex market and find coverage that actually meets your needs rather than just checking the mortgage company's box.
How to Lower Your Premiums
Even with rising rates, you have options to reduce your home insurance costs without sacrificing necessary coverage.
Increase your deductible. Moving from a $500 to a $2,000 deductible can cut your premium by 25% or more. Just make sure you have the cash reserves to cover the higher deductible if you need to file a claim. For many homeowners, accepting more small-loss risk in exchange for protection against catastrophic losses makes financial sense.
Bundle your policies. Most insurers offer significant discounts—typically 15-25%—when you bundle home and auto insurance. Given that the average Maryland household has multiple vehicles, bundling often delivers hundreds in annual savings.
Upgrade your home's systems. Installing a monitored security system, upgrading to impact-resistant roofing, or updating electrical and plumbing systems can all earn discounts. For older Centreville homes, these upgrades serve double duty: they reduce your insurance costs while making your home safer and more valuable.
Ask about all available discounts. Many insurers offer discounts for being claims-free for multiple years, having a newer roof, being a non-smoker, or being a longtime customer. These discounts add up, but insurers won't automatically apply them—you need to ask.
Getting Started with Your Centreville Home Insurance
Shopping for home insurance in Centreville starts with understanding what you're actually insuring. Get a current replacement cost estimate for your home—not its market value, but what it would cost to rebuild from the ground up using similar materials and quality. For historic homes, this almost always exceeds market value.
Look up your property's flood zone on FEMA's Flood Map Service Center. This tells you whether you're in a high-risk area and helps you price flood insurance accurately. Queen Anne's County is updating its hazard mitigation plan, so flood maps may change—another reason to secure coverage sooner rather than later.
Get quotes from at least three insurers. Coverage and pricing vary widely, and the cheapest policy isn't always the best value if it has significant coverage gaps or a reputation for difficult claims handling. Compare not just premiums but deductibles, coverage limits, endorsements included, and customer service ratings.
Finally, review your coverage annually. As your home appreciates, as you make improvements, or as your circumstances change, your insurance needs change too. Maryland's home insurance rates have increased significantly in recent years, and the coastal insurance market continues to evolve. Stay proactive about your coverage to avoid surprises when you need to file a claim.
