Home Insurance in Pennsylvania

WRITTEN BY: Amelia Ciffone

UPDATED: MAY 24, 2022 | 1 MIN READ

Homeowners insurance rates in Pennsylvania are a bit of an enigma. It’s ranked 40th out of all 50 states from most to least expensive, putting it on the top 10 list of cheapest states for homeowners insurance premiums. Yet most of the hazards that make homeowners insurance more expensive – like lower levels of education, risk of property damage from nor’easters, hurricanes, flooding, sinkholes, and lower levels of income are all prevalent in the state. At the same time, property damage crime statistics are significantly lower than many other states in the US. So this may help partly explain why the average homeowner pays less than $1,000 per year on premiums.

  • Fun fact – Central Pennsylvania is known as America’s “Snack Belt”. Why, you ask? Because some of the most iconic tasty treats in American history – snow cones, Hershey’s chocolate, Peeps, Auntie Anne’s pretzels, Planters nuts, and many others – originated from this carb-friendly region of the United States. 

Average Rates in Pennsylvania

As we already said, Pennsylvania is #40 on the list of most expensive states for homeowners insurance. This is because, despite the fact that the national average is $1,211 per year for foremost annual premiums, the average homeowner in Pennsylvania is only paying $931. Price-wise, from most to least expensive, Pennsylvania is sandwiched right between West Virginia and Vermont. But the price differences between these states very minimally, from single to low double-digit numbers. 

Renters in Pennsylvania are getting a similarly good deal. It only costs around $158 annually for a renter’s insurance policy in Pennsylvania. This is considerably cheaper than the national average of $180. 

Pennsylvania Legal Insurance Requirements

Pennsylvania follows all of the typical rules and regulations that most states do. If you are currently paying off a mortgage on your home, the odds are good that your lender will require you to cover it with some sort of a homeowner’s insurance policy. What Pennsylvania doesn’t do, however, is require homeowners insurance companies to offer sinkhole coverage. Many homeowners may not know this, but sinkhole damage is a huge risk in Pennsylvania. But unlike other states who have a similar problem and have mandated that insurance companies provide this coverage for homeowners, Pennsylvania has not yet taken this step. So keep that in mind when you are shopping around for coverage. 

Common Risk Factors in Pennsylvania

Wind, flooding, snow, and sinkholes are the biggest problems for Pennsylvania homeowners. Flooding has been especially bad in recent years. In 2016 alone, FEMA paid out 1.5 million in flood insurance claims. So it’s important for Pennsylvania homeowners to consider purchasing this coverage. Concerned homeowners can get it through the National Flood Insurance Program or through private insurance companies who offer it in the state. 

The Insurance Placement Facility of Pennsylvania is the company that manages Pennsylvania’s fair plans for homeowners who have been rejected by traditional insurance companies. If you live in a high-risk area and cannot find conventional home insurance coverage, you may want to consider one of these plans. But do so with caution. There are no rules or regulations which say they have to be competitively priced with the traditional home insurance Market. So expect them to be very, very expensive. You should do everything in your power to get traditional coverage before you resort to such a plan.

Insurance Demographics/Statistics in Pennsylvania

Natural disasters are your most expensive and least predictable worries as a homeowner in Pennsylvania. But they aren’t the only things you have to worry about when it comes to the total cost of homeowners insurance. Other factors which can impact the price include:

  • Average Home Price per state – Pennsylvania home prices are cheaper than that of the average state at around $204,876 for the average home. That’s nearly $60k less than the national average, which helps homeowners pay less for coverage and lowers your premiums.
  • Average Crime Rate – Property crime in Pennsylvania is right now at 14.9 per 1,000 residents. This means you have a 1 in 67 chance of becoming a victim of property crime in PA, compared to the national average of 1 in 43.
  • Average Income Level – Pennsylvania households are bringing home around $63,463 each year, which is only $2,249 lower than the average US median household income. The more money you make, the more likely you are to get a better rate for your home insurance premiums.
  • Average Education Level – 31% of Pennsylvanians have a bachelor’s degree or better, which is slightly below the national average of 32%. But if you’re a lucky degree-holder, there’s a good chance your insurance rates will be lower!

Where To Purchase Home Insurance in Pennsylvania

We strongly suggest you shop around on a regular basis for a better home insurance premium, even if you’re happy with your current service. 56% of homeowners continue paying more than they have to because they don’t shop around for a better deal on a regular basis.

Of those who do shop around, so few shop around online, and could be shooting themselves in the foot because of it. After all, how else can you compare so many different companies and quotes in so little time? We can show you. Just fill out our online form to get in touch with us and start saving today.