Best homeowners insurance in Pennsylvania of 2021
Pennsylvania has a high homeownership rate, with 69% of the state’s residents owning their home, partially due to relatively low median home values of $180,200. Plus, the average cost of home insurance in Pennsylvania is $730 per year for $250,000 in dwelling coverage. That is about $61 per month to protect one of the most important investments you will make in your life.
Home insurance is not mandatory unless you carry a mortgage. Still, the relatively low cost of Pennsylvania home insurance far outweighs the expense of having to rebuild a house or replace your belongings out of pocket. The best homeowners insurance in Pennsylvania is a combination of low premiums, adequate amounts of coverage and good customer service when it is time to file a claim. Bankrate analyzed the current market to find the best Pennsylvania homeowners insurance coverage.
Best home insurance companies in Pennsylvania
The following five carriers are among the top Pennsylvania homeowners insurance companies by market share. You will find that annual premiums can vary for the same level of coverage from one insurance company to another. For this reason, we have included multiple rates for comparison, as provided by Quadrant Information Services.
|Home insurance company||Average annual premium for $250k dwelling||J.D. Power score|
|Allstate||$729||829 / 1,000|
|Chubb||$917||778 / 1,000|
|Erie||$542||839 / 1,000|
|State Farm||$1,115||829 / 1,000|
|USAA||$714||*889 / 1,000|
*Due to membership eligibility restrictions, USAA is not eligible for official rankings by J.D. Power.
Allstate received above-average ratings in the 2020 J.D. Power U.S. Home Insurance study for customer satisfaction. It may be partly due to the dedicated local agents — Allstate has offices in 251 cities and towns in Pennsylvania. Allstate offers all of the standard coverages, with add-on options. The insurance company also offers an extensive list of discounts, some of which are just for signing on and for buying a new home, so homeowners can save.
Learn more: Allstate Insurance review
While Chubb scored around average on the J.D. Power U.S. Home Insurance Study, the provider did exceedingly well in the 2021 U.S. Property Claims Satisfaction Study, receiving an 896 out of 1,000 and coming in third of all U.S. property insurance providers. Its rates are not the cheapest in the state, but the carrier specializes in feature-rich home insurance for higher-value homes and high-net-worth homeowners in Pennsylvania who are in search of robust home insurance policies.
Learn more: Chubb Insurance review
Because Erie Insurance is a Pennsylvania-based insurance company, it makes sense that it would be one of the best Pennsylvania homeowners insurance companies. Founded in 1925, Erie currently has offices in eight cities, including Pittsburgh, Philadelphia, Allentown and Harrisburg. The company maintains an A+ financial rating from AM Best, suggesting great financial strength.
Learn more: Erie Insurance review
As one of the leading U.S. home insurance providers, State Farm may be a great option to consider in Pennsylvania. This provider offers almost every type of insurance you might need, from auto to life insurance, and you will have plenty of opportunities to bundle and save through this provider. Best of all, there are agents in 400 Pennsylvania towns and cities, ready to provide local, personal service.
Learn more: State Farm Insurance review
USAA scored the highest in J.D. Power Score ratings across all categories for customer satisfaction, though it is not eligible for ranking due to its membership-based policies. USAA provides all of the standard home insurance coverages and add-ons that customers can choose from. Additionally, USAA coverages include most weather-related damages and identity theft. However, only active or former military and their families have access to USAA’s insurance policies and exclusive benefits. Active personnel and family stationed at one of the two Army or two Navy bases in the state may instantly qualify for membership. However, veterans and retired Armed Forces can also join.
Learn more: USAA Insurance review
How much is homeowners insurance in Pennsylvania?
The average homeowners insurance policy in Pennsylvania costs just $730 per year for a $250,000 dwelling. This is significantly lower compared to the national average annual premium of $1,312 and the cost of coverage in neighboring states such as New York at $987 annually and Maryland at $1,124 annually. Low insurance premiums in the state are most likely caused partially by the low average home value.
Home insurance in Pennsylvania
Home insurance in Pennsylvania has some unique points that differentiate it from neighboring states’ home insurance policies. Here is a closer look at factors affecting Pennsylvania homeowners insurance costs.
Common causes of loss in Pennsylvania
Homeowners insurance companies in the state of Pennsylvania saw $1.4 million in losses in 2019. Pennsylvania has unique perils and hazards homeowners should be prepared for. When shopping for home insurance, consider the following common issues in the state:
- Vandalism: Vandalism more commonly occurs in certain Pennsylvania cities, like Philadelphia or Pittsburgh. However, mischief can happen anywhere in the state. Broken windows or graffitied walls are just a couple of examples of vandalism.
- Fires: Parts of Pennsylvania are mountainous regions or heavily wooded. During drier times of the year, fire risk is higher. Residents who live in areas at risk for wildfires should be most vigilant during spring and autumn.
- Frozen pipes: Cold winters and older homes typically cause pipes to freeze and burst. Insulating pipes, even with newspaper, could help against the issue, according to Pennsylvania American Water.
- Floods: Flooding is common in many areas nationwide. Unfortunately, Pennsylvania is no exception. Parts of Schuylkill, Lebanon and Dauphin counties are vulnerable to heavy flooding.
There may also be additional perils that are not covered by a standard Pennsylvania homeowners insurance policy and may require additional coverage. Consider speaking to your insurance provider to make sure you are covered against common perils in your area.
Home insurance coverage options in Pennsylvania
Residents of the Keystone State should consider home insurance add-ons that protect their property and belongings against the state’s unique challenges. Some coverages Pennsylvania homeowners might consider include:
- Flood insurance: As mentioned, flooding affects homeowners in many areas of Pennsylvania. Coverage has to be purchased separately since flood-related damages are not covered by a standard home policy. You can purchase flood insurance through FEMA, the federally-backed agency.
- Replacement cost coverage: Most home insurance policies reimburse you for lost or damaged belongings using actual cash value. This may be an issue because you will only receive an amount with depreciation deducted based on the age and condition of the item. Opting replacement cost coverage provides you enough payment to purchase a new version of the item.
- Sinkhole insurance: Sinkholes are most common in six states, including Pennsylvania. However, the damage is not covered through a standard HO-3 policy. Adding sinkhole coverage could save you tens of thousands of dollars should one damage your property.
Frequently asked questions
What is the best homeowners insurance in Pennsylvania?
Allstate, Chubb, Erie, State Farm and USAA are all among the best Pennsylvania homeowners insurance companies. To find out which is the best option for you, you could compare coverage options and prices from several companies, including the ones on our list.
How do I get homeowners insurance in Pennsylvania?
You can get home insurance in Pennsylvania by working with an agent or purchasing a policy directly from an insurance provider.
What are the most common causes of home insurance claims in Pennsylvania?
Floods, fires and vandalism are among the leading causes of Pennsylvania homeowners insurance losses.
Will my Pennsylvania homeowners insurance cover flooding?
Flooding is not standardly covered by Pennsylvania homeowners insurance policies. However, you could ask your provider about options to purchase a separate flood insurance policy.
What is the difference between dwelling and personal property?
Dwelling coverage refers to the structure and exterior of the home (often referred to as the four walls). It includes fences, sheds and more. Personal property refers to your belongings, such as electronics, furniture, clothing and more.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.