Best cheap homeowners insurance in Philadelphia

Based on data supplied by Quadrant Information Services, Bankrate has determined that the average cost of home insurance in Philadelphia, Pennsylvania is $1,542 for $250K in dwelling coverage. Your own rate is based on factors unique to you and your property, including your age, credit score and claims history, and is likely to differ from the average. Bankrate’s insurance editorial team reviewed insurers to help you find the best cheap home insurance in Philadelphia, PA.

Best cheap home insurance companies in Philadelphia

The cheapest home insurance companies in Philadelphia include USAA, Penn National and Allstate, according to our analysis of rate data from Quadrant Information Services. But while these providers offer cheap average rates on Philadelphia homeowners insurance, it may be helpful to consider other factors in addition to cost when choosing a home insurance company.

After finding the cheapest companies, Bankrate’s insurance team assigned each insurer a Bankrate Score, with a maximum score of five points. These scores are calculated based on coverage options, discounts, financial strength scores, J.D. Power rankings, accessibility and more. Using Bankrate Scores to compare the cheapest companies may help you choose a home insurance company that best meets your needs.

*Not officially ranked with J.D. Power due to membership eligibility restrictions

USAA

In addition to offering the lowest average rates of the providers on our list, USAA is also one of the best homeowners insurance companies in Pennsylvania, according to our analysis of insurance providers in the state. The company was one of two winners of a 2024 Bankrate Award for Best Home Insurance Company Overall. USAA’s homeowners insurance is value-packed for current and former members of the military and their immediate family members. In addition to average rates landing it in the top five cheap Philly home insurance companies, replacement cost coverage comes standard. If your home or its contents are damaged or destroyed, you can rebuild or replace items at the current market cost, without depreciation. The main drawback is the limited availability to the public. Military affiliation is a prerequisite to obtaining coverage, and membership is limited to military members, veterans and qualified family members, meaning that not everyone can take advantage of what USAA offers.

Learn more: USAA Insurance review

Penn National

Penn National is sold through independent agents in several states. According to our analysis of average rate data, it offers some of the lowest homeowners insurance premiums in Philadelphia. To save more on your home insurance policy, consider taking advantage of Penn National’s unique discounts such as smoker-free household, retired daytime occupancy and smart home protective devices, including doorbell cameras, Wi-Fi sensors and water sensors. As a regional insurer, Penn National did not rank in the 2023 J.D. Power customer satisfaction study.

Allstate

Based on our review of average annual rates among top insurers by market share in Philadelphia, one of the best cheap home insurers is Allstate, with an average premium of just $1,253 per year for $250K in dwelling coverage. The company tied with USAA in the 2024 Bankrate Awards for Best Home Insurance Company Overall. It also received a Bankrate Award for Best Company for Bundling Home and Auto Insurance. Allstate has a few discounts you may be able to use to further lower rates, like the welcome and loyalty discounts, new homebuyer or new construction home, having active safety devices installed in your home and automatic payments. Allstate received a 4.2 Bankrate Score but ranks just below the industry average in the 2023 J.D. Power Property Claims Satisfaction Study.

Learn more: Allstate Insurance review

Erie

Erie Insurance is the highest-ranking company in the 2023 J.D. Power customer satisfaction study, which indicates that it has good customer service. The carrier offers low average rates on homeowners insurance, which may be ideal for first-time homebuyers, with plenty of options to customize coverage. Service line, water backup and sump overflow coverage can be added for comprehensive home protection. Because of all these factors, Erie earned a favorable 4.4 Bankrate Score, the second highest after USAA.

Learn more: Erie Insurance review

PURE

If you are looking for cheap homeowners insurance Philadelphia, PURE is another home insurance company to consider. PURE’s average home insurance in Philadelphia is below average compared to the citywide average. The company specializes in insuring high-value homes that are worth more than $1 million. Another possible benefit is that PURE’s policies include many coverage types that are typically add-ons or optional with other carriers, and you can access special recovery services after a claim. However, if you don’t own a high-value home, you might not be able to get coverage through PURE.

Learn more: PURE Insurance review

Home insurance coverage options in Philadelphia

Like any other state, homeowners insurance is not mandatory in Pennsylvania. However, coverage is typically considered well worth the cost to financially protect yourself in the event of a catastrophic loss. If you have a home loan, your lender will generally require you to have coverage, although some coverage options may be up to your discretion. An HO-3 policy is the most common home insurance policy and generally includes coverage against various perils that affect Philadelphia residents, such as snow, wind and ice. Other coverage types that may be worth considering include:

• Jewelry endorsement: Homeowners insurance provides limited coverage for high-value items such as fine jewelry, watches and collectibles. Most Philadelphia insurers will provide the option to include specific coverage for these items under a scheduled personal property endorsement, which will ensure you get reimbursed the actual value, should you become a victim of theft or burglary.
• Flood insurance: Experts predict flooding will become more common in Philadelphia. Flood insurance will help to expand your homeowners coverage to protect you from devastating water damage. This particular type of insurance is sold as a separate policy since flood insurance is excluded from standard homeowners insurance coverage.
• Guaranteed replacement cost: Some home insurance policies only come with actual cash value, which means you are reimbursed for the depreciated value of damage to your home’s structure. With guaranteed replacement cost coverage, your policy will cover rebuilding your home at replacement cost.

Home insurance discounts in Philadelphia

Your Philadelphia, Pennsylvania home insurance company is likely to offer at least a few discounts, which can save you money on your premium rate. Although every company has its own discount options, here are a few that are common with many insurers:

• Bundling: Most carriers offer this discount, which will save you a percentage off on your premium rate if you purchase more than one policy from the same company. Most commonly, this will be home and auto, but you may also be able to save with life insurance, renters coverage or an umbrella policy.
• Claims-free: Your insurer would rather not pay out on expensive claims, so they may reward you with a discount if you are claims-free. Often you need to remain claims-free for a certain number of years, usually three to five, to benefit from this discount.
• Safety discounts: Installing devices such as smoke alarms, burglar alarms or sprinkler systems may net you savings from some insurers since these devices make it less likely that you will need to file claims for damages.
• Affiliation discounts: Some insurers offer discounts to individuals who are members of certain groups, such as alumni organizations, professions such as first responders, teachers or military members.
• New home: New homes are less likely to need extensive repairs, and so may earn you a discount with your insurer. You may also be eligible for one if you upgrade your home’s infrastructure, such as the electrical or plumbing systems.

Frequently asked questions

• • What is the best home insurance company?

    The best home insurance company will differ from person to person, depending on your priorities. You may be looking for the company that writes the cheapest policies, or perhaps excellent customer service is most important to you. Other considerations may be coverage types, the availability of discounts or generous endorsement options. When you know what your top priorities are, you can start to ask for quotes from companies that fit your desired profile.

  • How much does home insurance in Philadelphia, Pennsylvania cost?

    Home insurance in Philadelphia, Pennsylvania costs an average of $1,542 annually for $250K in dwelling coverage, which is the portion of your policy that covers your home’s structure. That cost is below the national average, which is $1,759, but is considerably more than the average for Pennsylvania as a whole, which comes in at $968 for the same amount of coverage.

  • How much home insurance do I need in Philadelphia?

    To determine how much home insurance you need, it can be helpful to know what the cost per square foot of construction is in your region. Multiply that cost by the square footage of your home and you will have a rough estimate of what you might want for your dwelling coverage. A knowledgeable insurance agent should have that information, and can help you decide on how much insurance to purchase. Note that the number you come up with may not be the same as your home’s market value.

• • Methodology

    Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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.

  • Bankrate Score

    Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

    • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
    • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
    • Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

    Tier scores are unweighted to show the company’s true score in each category out of a possible five points.