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Pennsylvania is an exciting place to live in. The housing market is accessible for the most part, the place is rich in culture, and there are many things to do. If you're considering investing in real estate there, you may find plenty of opportunities to take advantage of.

Once you find the perfect property, you must protect it. That's when homeowners insurance comes in. This insurance type is meant to cover a wide range of damages associated with your home, including your personal belongings.

There are dozens of popular home insurance companies in Pennsylvania, so it can get overwhelming to find the right fit. Most companies charge different premiums depending on what you get for your policy or other factors. If you don't compare different quotes, you risk missing out on many money-saving opportunities.

We know how exhausting finding the best home insurance companies can be, so we made it easier by compiling all the information you need about the topic in one place. Here, you'll learn more about homeowners insurance in Pennsylvania and how to find the right fit depending on what you need.

About Pennsylvania Homeowners Insurance

Homeowners insurance (or home insurance) is a type of policy that protects your property and personal belongings. You can get different types of protection depending on the plan you get.

Once you request a quote from a homeowners insurance company, the agent will give you a standard or customized package based on your needs. You could pay higher or lower premiums based on different factors.

People mostly get homeowners insurance to cover damage caused by weather events like hail, flooding, fire, etc. However, certain policies also cover damages coming from theft or vandalism.

Your insurance policy could also provide you with liability protection. This means that you'll be able to cover legal expenses or medical bills if someone sues you after getting into an accident at your home.

Standard policies are good enough for the most part. However, you can get extras that enhance the protection. You can get different options to choose from depending on the company.

What's the Average Cost of Homeowners Insurance in Pennsylvania?

According to NerdWallet, the average annual premium for home insurance in Pennsylvania is $995. This is much lower than the national average, which is $1,820 for up to $300k in coverage.

One of the reasons why insurance isn't as expensive in Pennsylvania is that the state isn't as exposed to natural disasters as others. Still, some cities are at risk of tropical storms, thunderstorms, or tornadoes.

Keep in mind that the average annual premium should only be used as a reference. It doesn't mean you'll always pay that amount for your insurance policy. Most of the time, prices will change depending on where the property is, which package you're getting, etc.

Also, you could take advantage of the discounts that many insurance companies offer. In any case, the best way to know how much you'll pay for insurance is to ask the company directly.

What Factors Are Involved in Your Insurance Coverage in Pennsylvania?

Knowing what can affect your insurance premium will give you a better idea of what to expect even before you ask for a quote. If you want to make a smart and informed decision about your investment, make sure to keep those in mind at all times:

  • ZIP Code
  • Dwelling coverage
  • Credit history
  • Past claims history
  • Marital status
  • Deductible
  • Property features and age

Depending on the city and the company, you could also expect additional factors to affect your policy. Those include the property's distance from water or a fire station, having attractive nuisances (i.e. a pool), having certain dog breeds, etc.

Most companies will evaluate your case differently, so the best thing you can do is to compare as many quotes as you can until you find the one that offers the most coverage for the lowest price.

Is Home Insurance Necessary?

Do you actually need home insurance in Pennsylvania? The short answer is no.

Unlike auto insurance, which is required in most states, homeowners insurance isn't required at a state or federal level. Still, it may be in your best interest to get at least a standard homeowners insurance policy.

The primary benefit of homeowners insurance coverages is that they'll protect your home from any unexpected event. Even if the event wasn't too serious, it can still cause expensive damage to your home. Paying out of pocket for repairs/replacements will probably hit you hard, financially speaking.

Once you purchase homeowners insurance, however, you ensure you're protected, at least up to a certain limit. This will always save you time and money in the future.

Another reason why you may still need to get homeowners insurance in Pennsylvania is that lenders are allowed to ask you for it. If you're getting financing for your next property, your lender may require you to get insurance first. Otherwise, you risk not getting the money you need.

It's common for a mortgage lender to ask for insurance, as this protects them from potential losses in the future. To summarize, even if homeowners insurance isn't required by law, it's still recommended to get it.

What's the Difference Between Home Insurance and Landlord Insurance?

Even though home insurance and landlord insurance are similar, there are a few differences to note:

  • Home insurance protects your property, whereas landlord insurance protects the owner of the property. The latter is recommended when you're looking to rent the property instead of living in it.
  • The type of protection you get is also different. Landlord insurance only protects the personal property you rent to your tenant. If your tenant wants protection for their things, they must get separate renters insurance. Home insurance, on the other hand, protects most of the objects you have on the property.
  • Landlord insurance only offers liability protection for accidents that happen on the property. Home insurance protects you regardless of where the accident happened.
  • Home insurance covers loss of use, whereas landlord insurance covers loss of income.

If you're going to live at the property you're investing in, home insurance is the best option to take. On the contrary, if your goal is to rent it, you may consider landlord insurance.

What Should You Include in Your Pennsylvania Home Insurance Policy?

Your basic home insurance package will already have what you need to protect your property, including dwelling coverage and personal property protection.

However, remember that Pennsylvania is exposed to certain weather events that could potentially damage your property. In that case, you must also consider getting these:

  • Flood Insurance
  • Umbrella Policy
  • Sewer Backup Add-on

Typically, these are sold as separate insurance policies. In the case of flood insurance, for example, companies have partnerships with the National Flood Insurance Program (NFIP) or other related entities. This allows them to offer a separate insurance package to cover your property.

In most cases, the more add-ons you get, the better. However, you must evaluate all circumstances and potential perils surrounding your home, as this will help you determine which extras you truly need. You don't have to spend more money unnecessarily, so make sure to ask an expert if you're having trouble figuring it out.

Are Home Insurance Claims Common in Pennsylvania?

Pennsylvania isn't considered a high-risk state regarding home insurance claims. However, there are still a few common causes for claims that you should be aware of. These include:

  • Theft
  • Vandalism
  • Snow and Ice
  • Storms
  • Fire

If your property is located in a high-risk zone, you may expect a higher premium.

Tips to Find the Perfect Pennsylvania Homeowners Insurance for Your Investment

Finding a great home insurance company in Pennsylvania can be hard, but it doesn't have to be for you. Here are a few tips that can help you find the greatest company to protect your home at all times and save money:

  • Check Your Home's Features: The more upgraded your home is, the better. Insurance companies tend to offer lower premiums to those with "safer" properties. You may consider doing some low-cost enhancements to increase your chances of getting a better price.
  • Check the Price Averages Where You Live: Your location plays a huge role when calculating your premium. Most companies consider your state, city, and ZIP code. The safer the zone, the lower the premium will probably be.
  • Consider Discounts: Many insurers offer discounts to clients for doing certain things, such as bundling home and auto insurance or installing smart home technology.
  • Consider the Type of Deductible You Need: The lower the deductible, the higher your premium will be, and vice versa. Evaluate your needs to check which option fits your goals the best.
  • Compare Quotes: Don't stay with the first quote you get. Ask several companies, gather different quotes with the same coverage, and compare them. You'll be able to find the cheapest option this way.

Best Five Pennsylvania Homeowners Insurance Companies

You're now ready to look for the best insurance company in your area. We made this list of our top five picks to save you some time. Each of these companies was chosen based on its coverage, add-ons, and details.

The average annual rates in this section were calculated based on having a limit of $300,000 in dwelling coverage.

#1 - State Farm

State Farm

State Farm is the largest home insurer in the United States. Besides offering homeowners insurance, you can also expect renters insurance, life insurance, auto insurance, and more. If you're looking for the company with the most solid reputation on the list, this is it.

Coverage and Features

Your standard homeowners insurance package in State Farm includes:

  • Dwelling and unattached structure coverage
  • Personal property protection
  • Loss-of-use protection
  • Personal liability protection
  • and more

However, you can also add a wide range of extras to make your policy coverage even better. Some of these add-ons include:

  • Increased dwelling coverage limits
  • Sewer/drain backup coverage
  • Liability coverage for nursing workers
  • Earthquake coverage
  • Coverage to replace damaged utilities
  • Dwelling foundation coverage
  • Service line coverage
  • Identity theft protection

Discounts

The average annual premium for State Farm is approximately $1,500, which is slightly less than the national average. This is excellent news if you're planning on saving money.

Unfortunately, State Farm doesn't offer as many discount options as the other companies on the list. You can still apply to the following, though:

  • Bundle different State Farm policies.
  • Install protective devices.
  • Reinforce your home to protect it against extreme wind.
  • Reinforce your roof.

#2 - Allstate

Allstate

Allstate is known for offering many insurance products, discounts, and add-ons. Regardless of what your goal is, you can ensure your property will be in good hands.

Coverage and Features

Allstate's basic insurance policy includes everything you can expect from any other company, including:

  • Dwelling and unattached structures
  • Personal property and personal liability
  • Loss of use
  • Medical payments

If you get the company's "Enhanced Package," you can get extra benefits like deductible rewards, claims-free discounts, and more.

As for the extra perks, Allstate offers the following:

  • Electronic data recovery coverage
  • Yard or garden coverage
  • Identity theft protection
  • High-value item protection
  • Business property coverage
  • Water backup/sump pump failure coverage
  • And more

Discounts

The average annual premium for Allstate is $1,660. Even though the cost is already decent, you can save some money by applying to one of the company's discount options:

  • Bundle different Allstate policies.
  • Install protective devices.
  • Buy a recently-constructed home.
  • Switch to Allstate from another insurer, and stay with the company.
  • Sign up for your new policy at least a week before the old one expires.
  • Set up automatic payments.

#3 - Farmers

Farmers

What makes "Farmers" special is that it offers three different versions of its standard policy package. This means that you have plenty of insurance options to choose from. Even though its annual premium is on the expensive side, keep in mind this is a company with a solid reputation.

Coverage and Features

Your average Farmers insurance package includes dwelling coverage, personal liability coverage, medical payment coverage, loss-of-use protection, and more.

Depending on where you live, you could also apply for extended replacement cost coverage and personal property replacement cost coverage.

What about the upgrades we mentioned? You have the "Enhanced Package," which gives you higher policy limits for certain things. On the other hand, you can get the "Premier Package," which offers an even higher policy limit on personal belonging coverage and possibly guaranteed replacement costs.

If that isn't enough, you can still add some of the following perks:

  • Eco-Rebuild
  • Identity theft protection
  • Personal injury protection
  • High-value item coverage
  • Equipment breakdown coverage
  • Homesharing coverage
  • Ordinance/law coverage
  • Service line coverage
  • Claims forgiveness
  • Water backup or sump pump failure protection

Discounts

Farmers has the highest average annual rate for home insurance. It's $2,190.

Fortunately, there are many discount options you can apply to. Moreover, your deductible declines every year you stay with the company.

Here are the most common insurance discounts you could get:

  • Install protective devices.
  • Bundle different insurance policies from Farmers.
  • Own a home that's less than 14 years old.
  • Go paperless.
  • Work in (or retire from) a designated profession. This includes doctors, teachers, and firefighters.
  • Set up automatic payments.
  • Pay your premium in full.
  • Reinforce your roof.
  • Install smart home systems.
  • Reinforce your walls, windows, and other parts of your home's structure against natural disasters.
  • Get a "Green Certification."
  • Rent to own.
  • Pay your bills on time.

#4 - Nationwide

Nationwide

Nationwide is one of the country's largest home insurers. Its main benefit is that it includes extra perks in the standard policy, meaning you could save a bit of money. The company also operates in most states and offers plenty of discount options.

Coverage and Features

Your standard homeowners insurance policy includes the basics like dwelling coverage, personal liability protection, and loss-of-use coverage. However, you could also get a few perks like:

  • Ordinance or law coverage
  • Covered losses of up to $500 due to unauthorized debit/credit transactions, counterfeit money, or forged checks

Besides the benefits we just mentioned, you can add some of the following extras to your policy:

  • Guaranteed/Extended replacement cost coverage
  • Roof replacements
  • Identity theft protection
  • High-value item protection
  • Water backup coverage
  • Service line coverage
  • Personal injury protection

Make sure to ask your insurer to see which options are available in Pennsylvania.

Discounts

Nationwide's average annual premium is considerably higher than the national average. It's about $2,180 per year. Even though it's one of the most expensive options on this list, you could bring the cost down if you apply to some discounts:

  • Bundle different Nationwide policies.
  • Buy your home less than a year before applying for coverage.
  • Don't file claims (claims-free discounts).
  • Live in a gated community.
  • Install protective systems at your home.
  • Reinforce your roof.
  • Install smart home technology.

You could also get a discount if you have been continuously insured by another company.

#5 - Erie

Erie

Erie is an insurer based in Pennsylvania, which is an excellent advantage if you're planning on investing in real estate there. The agents at this company may be quicker to understand what you need, meaning you could get the perfect coverage plan for your property.

Coverage and Features

Even though Erie is only available in 12 states (and Washington, D.C.), you can rest assured that it covers everything you need if you live in Pennsylvania.

Erie's standard policy offers the following protection options:

  • Dwelling and unattached structures
  • Loss of use
  • Personal liability
  • Personal property
  • Medical payments

As opposed to other companies on this list, you can also expect a few extras in your policy, such as:

  • Replacement cost coverage
  • Animal coverage
  • Theft protection
  • Coverage for "Hard-to-Replace" items
  • Coverage for precious metals

Finally, you can add more perks to your policy if you want even more protection:

  • Homesharing coverage
  • Equipment breakdown protection
  • Water backup and sump pump failure coverage
  • Identify theft protection
  • Underground utility line and pipe coverage

Discounts

The average annual premium for Erie is $1,430, which is perfect if you're looking for an affordable solution for insurance in Pennsylvania.

You can save even more money if you apply for the following discounts:

  • Have a recently-constructed home.
  • Install protective devices.
  • Get your quote a week before your old policy is renewed.
  • Bundle Erie policies.
  • Reinforce your home for protection against wind damage.
  • Pay your premium in full.
  • Set up automatic payments.

Other Home Insurance Companies in Pennsylvania You Can Check Out

Are you looking for more options before choosing your next homeowners insurance policy? Here are other companies that offer service in Pennsylvania and a wide range of useful features/discounts:

  • USAA
  • Chubb
  • Amica
  • Lemonade
  • Travelers

Conclusion

Even though Pennsylvania can be considered one of the "safe" states in the U.S., it doesn't mean that it's completely free of risk. You must be prepared in case any event or accident damages your personal property.

The companies we reviewed today do an excellent job of protecting your investment. Remember that every case is different, so you must take a closer look at what each company offers so that you can make a better choice.

There's no better thing than the peace of mind that comes with a great insurance package. If you're ready to invest in Pennsylvania real estate, don't forget to look for a great homeowners insurance package.

David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!

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The information on this website is from public sources, for informational purposes only and not intended for legal or accounting advice. DoorLoop does not guarantee its accuracy and is not liable for any damages or inaccuracies.

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