Best cheap homeowners insurance in Philadelphia

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Philadelphia homeowners recently experienced a wave of intense cold that froze pipes and damaged gardens and trees. Home insurance pays for repairs from a variety of hazards including snow and ice. Average home insurance rates in Philadelphia are $1,151 per year for a $250,000 dwelling. However, you can work on beating the average if you know which companies offer cheap home insurance Philadelphia premiums.

Best home insurance companies in Philadelphia

To find the best home insurance providers in Philadelphia, we looked at over a dozen insurance companies servicing the area and compared criteria including customer ratings, premiums and coverage options offered.

Home insurance company Average annual premium for $250K liability J.D. Power score
Westfield $292 NR
Cumberland Grp $733 NR
USAA $941 889 / 1,000
Erie $945 839 / 1,000
Penn National $1,000 NR

Westfield

Westfield provides home insurance for primary residences and vacation or secondary homes. Besides the standard type of home insurance you would expect, you can add home equipment breakdown. Similar to a home warranty, the optional coverage will pay for repair or replacement of household items such as computers, appliances, HVAC systems, heat pumps and more.

Cumberland Group

Cumberland Mutual sells home insurance to residents of Pennsylvania, New Jersey, Delaware and Maryland. Cumberland offers homeowners who prefer doing business the old-fashioned way the ability to talk with an agent in person or over the phone. The company does not provide an online quote tool, but is worth considering as one of the best home insurance companies in Philadelphia.

USAA

USAA’s homeowners insurance is value-packed. It makes the top five of cheap home insurance Philadelphia rates for its low premiums, but coverage includes replacement cost. If your home or its contents are lost, you can rebuild or replace items at the current market cost. In addition, USAA offers flood insurance. The main drawback is the limited access to the public. You will need to be military personnel or closely related to one to get coverage.

Erie

Erie Insurance receives high ratings from customers who responded to the J.D. Power customer satisfaction study. The carrier provides low-cost insurance ideal for first-time homebuyers and plenty of options to customize your coverage. You will receive replacement cost coverage with a standard policy. Service line, water backup and sump overflow coverage can be added for comprehensive home protection.

Penn National

Penn National is sold through independent agents in several states. Over 40% of the insurance the company underwrites is sold in Pennsylvania. To save more on your home insurance policy, take advantage of Penn National’s unique discounts such as smoker-free household, retired daytime occupancy and smart home protective devices including doorbell cameras, wifi sensors and water sensors.

Other Philadelphia home insurance options

Homeowners insurance is not mandatory in Pennsylvania but is worth the small cost to protect what may be your most valuable financial investment. However, if you have a home loan, your lender will most likely require you to have coverage. An HO-3 policy is the most common type of home insurance and includes coverage against a variety of perils that affect Philadelphia, such as snow, rain and ice. Other coverages that may be worth considering include:

  • Jewelry endorsement: An HO-3 provides limited coverage for high-value items such as fine jewelry, watches and collectibles. You may need to add an endorsement for the additional items.
  • Flood insurance: Experts predict flooding to become more common in Philadelphia. Flood insurance will help to expand your homeowners coverage to protect you from devastating water damage.
  • Guaranteed replacement cost: Most policies only come with actual cash value, which means you are only reimbursed for the cost of the damaged or lost item minus depreciation to account for its age. If you are rebuilding a home, you may have trouble finding items that match the original’s condition and lower cost. Guaranteed replacement cost will most likely allow you to replace items with a new version.

Home insurance discounts in Philadelphia

Once you select a Philadelphia, Pennsylvania home insurance company, there are additional ways to save on your home insurance. Nearly all carriers provide discounts to policyholders. Philadelphia residents should consider:

  • No claims history: Many homeowners have never experienced home-related damages or losses. You may be able to earn a discount for having a history with no claims.
  • Home security: Installing a professional or smart home security system can reduce the chances of burglary and loss. Your carrier may reward you with a discount for finding ways of reducing your risk of theft. In addition, safety equipment such as smoke or carbon monoxide detectors may also qualify you for discounts.
  • Bundling: Buying homeowners and vehicle insurance from the same insurance company means you may receive discounts for both.
  • Home upgrades: Newer homes are built to be safer and more efficient. New homes may qualify for discounts based on age, but an older home may also receive a discount if you upgrade systems such as the furnace, plumbing or electric.

Frequently asked questions

What is the best home insurance company?

The best home insurance company in Philadelphia depends on what you are looking for. There are several quality home insurance providers such as Penn National, Cumberland, USAA and Erie that offer low premiums and plenty of coverage options.

How much does home insurance in Philadelphia cost?

The cost of homeowners insurance can vary greatly from one provider to another. Bankrate’s findings for a basic $250,000 dwelling home policy cost between $292 (Westfield) and $1,515 (State Farm).

How much home insurance do I need in Philadelphia?

To calculate how much home insurance you need, insurance experts recommend researching what the cost of rebuilding in your area is and multiplying it by your square footage. Then add an amount for all your home’s contents. Arriving at the figure takes time. You will need to review all your household items including fixtures, furniture and other belongings to come up with an estimate.

Methodology

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.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.