Best cheap homeowners insurance in Philadelphia

When it comes to the average cost of home insurance in Philadelphia, Pennsylvania, Bankrate’s analysis found that the average homeowner pays $1,542 per year for $250,000 in dwelling coverage in this city. But that’s just the average. Depending on unique factors, like your ZIP code, age, credit score and claim history, your homeowners insurance premium might be higher or lower than the citywide average. For that reason, it’s often a good idea to compare the homeowners insurance company options in Philadelphia before purchasing a policy.

To help you find the best and cheapest homeowners insurance in Philadelphia, Bankrate’s insurance editorial team, which includes licensed insurance agents, researched insurance companies’ third-party ratings, rankings and other factors, and analyzed average rate data. We also evaluated providers based on factors like coverage options and discounts. Based on our research, we found some of the best cheap homeowners insurance companies in Philadelphia to include USAA, Penn National and Allstate.

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 homeowners insurance Philadelphia, 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. USAA’s homeowners insurance is value-packed for current and former members of the military and their immediate family members. In addition to rates landing it in the top five cheap home insurance companies in Philadelphia, 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 2022 J.D. Power customer satisfaction study.

Allstate

Based on our review of average annual rates among top insurers by market share in Philadelphia, the best cheap home insurer is Allstate, with an average premium of just $1,253 per year for $250K in dwelling coverage. 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. However, Allstate received a 3.5 Bankrate Score and ranks just below the industry average in the 2022 J.D. Power Property Claims Satisfaction Study.

Learn more: Allstate Insurance review

Erie

Erie Insurance receives high ratings in the 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. But despite earning high ratings for customer and claims satisfaction, Erie earned a 3.1 Bankrate Score, which is the lowest on our list.

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 cost for 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

Once you select a Philadelphia, Pennsylvania, home insurance company, there are a few ways to save on your home insurance. Nearly all carriers provide discounts to policyholders, which can help you save on your premium if you qualify:

• No claims history: Many homeowners have never experienced home-related damages or losses. You may be able to earn a discount with some insurers for having a history of no claims.
• Home security: Installing a professional or smart home security system can reduce the chances of burglary and loss. Some insurers may reward you with a discount for finding ways of reducing your risk of theft.
• Bundling: Buying homeowners and car insurance from the same insurance company may mean you earn discounts for both policies, which can be substantial.
• Home upgrades: 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 electrical.

Frequently asked questions

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    What is the best home insurance company?

    The best home insurance company may be different for everyone. To find your best home insurance company, you should evaluate what is most important to you and find a company that aligns with those criteria, whether its price, coverage types, financial strength or customer satisfaction.
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    How much does home insurance in Philadelphia cost?

    The average cost of home insurance in Philadelphia is $1,542 per year, for $250K in dwelling coverage. This is cheaper than the national average cost of home insurance at $1,428 for the same coverage. However, the average for Pennsylvania overall is cheaper than Philadelphia, at $760 per year for the same dwelling coverage amount.
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    How much home insurance do I need in Philadelphia?

    To calculate how much home insurance you might need, insurance experts may suggest researching the cost of rebuilding in your area and multiplying it by your square footage for a rough estimate. While this may give you a ballpark idea, speaking with a licensed agent is the best way to get an accurate estimate of coverage limits that will provide the best financial protection for you.

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    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.

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    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.