On average, Pennsylvanians are paying $1,446 every month on homeownership costs. There are 5.7 million homes in the Keystone State, 69% of which are occupied by owners.
- Population: 12,805,537
- Average value of homes that’s occupied by owners: $170,500
- Households: 5,007,442
- Average household income: $56,951
- High school grad or higher, percent of people age 25 years +: 90%
- Average travel time to work: 27 min
The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.
Pennsylvania boasts some of the lowest home insurance rates in the country, in spite of its erratic mid-Atlantic climatic conditions. So, if you have recently got your home in PA, you are in for luck. However, it’s to note here, a fair share of homes here are aged and hence demand more protection and maintenance, especially in extreme weather conditions. According to Insurance Information Institute (III), owner-occupied housing units in Pennsylvania come to approximately 69 percent. Older homes invariably translate to higher premiums. Also, some insurance companies here have started to hike the insurance rates due to recent climate changes. So, it will be smarter to get a comparison study on different home insurance companies to find the most compatible insurer – both in terms of rates and coverage.
Pennsylvania cheap home insurance premiums
According to III, Pennsylvania comes in the 39th position in regards to homeowners insurance rates. The annual average home insurance rate in PA is $927 which is significantly lower in comparison to the national average of $1,192. When it comes to monthly rates, homeowners here have to pay around $77 per month on average while the national monthly average is $99.
Average Pennsylvania Home Insurance Premiums
|National annual average||$1,192||$1,173||$1,132|
Now, although the Pennsylvania home insurance sector is served by some of the biggest names, it’s better to check the reviews of multiple companies before you make the final call. It will give you a solid idea of the varying rates, discounts, and coverage options in the market.
Top 3 companies by market share in PA
We will now review three home insurers that are popular in Pennsylvania. We’ve gathered these three companies based on III’s data on who holds the top 3 spots in the homeowners insurance market share in PA. Although these three companies are probably a safe bet as it’s popular in-state, we’ll still dive deeper in and look into the companies’ coverage plans, discounts they offer and financial ratings based on trusted organizations that review insurance companies. The most important thing to note when searching for the ideal insurer is the companies’ ability to pay claims in the event that your home gets damaged or destroyed.
These companies are reliable and will most likely suit any homeowner but we are not claiming that they will provide the best rates, service or coverage for everyone. A smaller, less popular company may perform better based on your individual need, your location, the condition of your home, and the risks associated with your area. All these factors are considered when you get your premium quote so it’s important to shop around and look at as many insurers as much as it is possible to you.
One of the biggest names among American homeowners insurance companies, State Farm, has been serving Pennsylvania homeowners since 1922. The company boasts a huge presence in the Pennsylvania home insurance sector with 1,000+ local agents and a 17.8 percent market share. The company is renowned for its affordable pricing and its wide range of customizable home insurance coverage packages. State Farm extends standard homeowners insurance coverage for almost all kinds of residential properties, such as manufactured houses, ranches & farms, and so on. The company also caters to old homes but on a case-by-case basis. If you want liability coverage and coverage for in-home office setup & condos, you will have to look into an additional coverage package.
In regards to discounts, State Farm offers some very basic options. Pennsylvania homeowners will get discounted premiums if they upgrade home security with advanced safety devices. Homes with impact-resistant roofs are also eligible for discounts from the company.
State Farm is backed with sound financial footing and assures timely claim resolution. No wonder it has received solid ratings from leading organizations that review insurance companies. JD Power has endowed the company with a 3 (About average) Power Circle Rating. On the other hand, State Farm has received A++ (Superior) from AM Best and AA from S&P.
It’s to note here that State Farm has built a user-friendly website. One of the best features of the site is surely the unique in-built inventory tracking tool. The tool enables users to keep track of all their belongings inside the home. This way, if theft or burglary occurs, homeowners can quickly notify State Farm agents about the event and missing items.
Erie Insurance is one of the top picks for Pennsylvania homeowners when they are looking for the most affordable home insurance without compromising on coverage. The company is the 2nd largest home insurance company in PA and covers a market share of 15.6 percent.
What makes Erie stand out in the market is its comprehensive coverage policies. The company covers a lot of aspects in its standard policy which are usually found in the add-on section of other companies. For example, Erie customers enjoy 100 percent assured replacement cost protection for their homes while some companies only stick to limited cost coverage. In fact, there are 3 comprehensive protections that are offered under Erie’s standard homeowners insurance policy:
- Structure coverage will protect the exterior of your property from fire as well as other kinds of hazards.
- Personal property coverage will shield the belongings inside your property from loss, theft, and damage. Eerie also offers protection against damage caused by animals.
- Liability protection will guard you in case someone gets injured on your property.
Erie also offers a great range of discounts. One of the most popular discount sections here is bundling. Customers will be able to save up to 30 percent on Erie home insurance rates by bundling multiple policies.
The company boasts strong financials as well and has received A+ (Superior) from the esteemed AM Best. On the other hand, it has also received a rating of 3 (About average) out of 5 Power Circles from JD Power in terms of overall customer satisfaction.
Allstate occupies the third largest market share at 13.6 percent of the Pennsylvania home insurance sector. The company offers a wide spectrum of home insurance coverage options to choose from for common dwellings. Allstate even caters to older homes too, which may not be viable with many insurance companies. In regards to additional coverage, it assures protection of property from sewer and water damage, protection of valuables, coverage of electronic data loss & recovery and identity theft coverage.
You will be glad to know Allstate extends double the discount options compared to many other home insurance companies in PA. There are discounts for new clients, automatic payments, for signing up with the company prior to the termination of present policy and so on. There are discounts for non-smokers and retirees as well.
Allstate is also renowned for its vast range of expert education resources to help homeowners in keeping their home safe & save on premiums. The company is financially strong and has received A+ (Superior) from the prestigious AM Best for financial stability and 3 (About average) on overall customer satisfaction from JD Power’s 2018 U.S. Homeowners Insurance Study.
Pennsylvania Home Insurance Companies: Market Share and Summary of Ratings
|Rank||Insurer||Market Share %||AM Best||S&P||JD Power|
Source: Insurance Information Institute, AM Best, S&P, JD Power
Section 504 home repair program
This program offers loans of up to $20,000 to very low-income homeowners who are looking to modernize, upgrade or renovate their homes. Grants (up to $7,500) are available for elderly homeowners who are 62 years and older and are looking to update their homes to modern safety standards. Loans and grants can be combined for a total of $27,000 with the loan’s interest rate fixed at 1% and can be paid off in 20 years. If the property is sold in less than 3 years then grants will have to be repaid as well.
More on PA homeowners insurance
Over 68 percent of housing units in PA are owned by their owner. Nationwide, 69 percent of housing units are owner-occupied. In this state, 28.5 percent of homeowners spend 30 percent or more of their total annual income on homeowner expenses. Approximately 47 percent of renters in Pennsylvania spend 30 percent or more of their total income on rental expenses and utilities.
Pennsylvania home insurance includes several categories of critical protection. Most insurers in this state provide coverage for your dwelling (also called your home structure), other structures on the property, (such as a shed or stand-alone garage), and personal property, which may include furniture, bicycles, and stereos. They offer liability protection, which protects you if someone else is injured on your property, and guest medical protection, which helps cover the cost of medical expenses for another person who is injured on your property. When choosing a policy that fits your needs, inquire about any additional protection options, such as whether or not a policy covers increased costs of living, such as food and lodging expenses, if your home becomes uninhabitable after a loss.
One unique consideration of Pennsylvania homeowners insurance is sinkhole claims. According to the US Geological Survey, Pennsylvania has one of the highest annual rates of sinkhole damage among all US states. Many homeowners insurance plans exclude coverage for sinkhole damage, but you may want to consider spending a bit more for that coverage if your home is situated in a high-risk area.
Depending on your location and other property factors, you may be able to save money on your Pennsylvania home insurance rates. You can save up to 15 percent on homeowners insurance costs for having a smoke-free home or a house fortified with fire and theft-protection equipment including deadbolts, security systems, smoke detectors, and fire extinguishers. Combining home and auto insurance can also reduce your premium – in some cases, up to 30 percent. Homes in Pennsylvania that are specially designed to reduce the risk of loss from natural disasters can also qualify for premium discounts. If your residence has storm shutters or a hail-resistant roof, you may save money on your annual policy plan. Some insurers offer a loyalty discount, such as lowering your home premium rate after you have been on their plan for a certain period of time. Individuals who are 55 and older may save up to 10 percent on their home insurance rates. Lastly, check to see if your prospective insurer offers discounts for certain payment plans, such as automated payments from your checking or savings account.
In Pennsylvania, an insurance plan should cover your house for at least 80 percent of its replacement value. Ask about coverage options for any personal belongings that are valuable to you, such as jewelry and collectibles. It may cost more to insure these items, but that expense may be worth the investment to protect your keepsakes.
For more assistance, please contact your local state department of insurance:
Pennsylvania Insurance Department
- Contact Form
Check out Pennsylvania’s neighboring states
- Delaware Home Insurance
- Maryland Home Insurance
- New Jersey Home Insurance
- New York Home Insurance
- Ohio Home Insurance
- West Virginia Home Insurance