September 9, 2025
Pennsylvania homeowners pay 48% below the national average for insurance, but flooding, sinkholes, and winter storms remain risks.
Pennsylvania homeowners benefit from some of the most favorable insurance market conditions in the United States. Pennsylvania ranks No. 11 nationwide for affordable homeowners insurance, with average premiums notably lower than the national average according to 2025 industry data. This advantage stems from the state's relatively low risk profile for natural disasters and proactive regulatory oversight.
The Keystone State offers homeowners cost advantages compared to national averages. Pennsylvania homeowners pay an average of $1,247 for $300,000 of dwelling coverage, which is well below the national average of $2,397. Based on 2025 statewide averages published by industry sources, Allstate offers one of the lowest average premiums among major insurers in Pennsylvania at approximately $825, while coverage options range from budget-friendly local carriers to comprehensive national providers.
The state's insurance department maintains an active role in protecting consumers. Pennsylvania's insurance department actively blocked a $42.9 million home insurance rate increase in 2024. This regulatory oversight helps maintain affordable premiums for residents across the state.
Pennsylvania faces unique weather challenges that homeowners must consider when selecting coverage. Severe storms can cause flash flooding, lightning, tornadoes, strong winds, and hail. The state's geography creates specific vulnerabilities that vary by region.
Pennsylvania has been affected by approximately 53 tropical storms and hurricanes, some with winds reaching as high as 75 miles per hour. While the state is landlocked, when tropical storms move up the East Coast, residents can experience extreme winds and heavy rain/flooding. There were 10 flood-related deaths in Pennsylvania in 2023, according to the National Weather Service. That's the highest number in the state since 2011.
Major river systems pose particular concerns. The Susquehanna, Delaware, and Allegheny rivers create flood-prone zones that require special attention. Properties near these waterways should strongly consider NFIP flood insurance, as standard homeowners policies exclude flood damage.
Pennsylvania experiences significant winter weather events that can damage homes through ice dams, frozen pipes, and heavy snow loads. The state's varied topography means mountain regions face more severe winter conditions than southeastern areas.
Pennsylvania homeowners should consider several key endorsements based on the state's specific risk profile:
Essential coverage for properties in flood-prone areas and homes with older infrastructure. This endorsement becomes particularly valuable during spring thaws and heavy rainfall events common throughout Pennsylvania.
Critical for Pennsylvania's numerous historic properties and older urban developments. This coverage is important for older row homes and historic properties, helping cover costs to bring damaged structures up to current building codes during repairs.
Valuable protection for aging infrastructure in cities like Philadelphia and Pittsburgh. This coverage helps with costs related to utility line failures and equipment malfunctions common in older urban areas.
Helps address inflation and rising material costs, particularly important given recent construction cost increases affecting the region.
Pennsylvania presents a unique geological challenge that many residents overlook. Pennsylvania is the number two state in sinkholes, right behind Florida. Most homeowners policies don't cover sinkholes, making this an important coverage gap to address.
Certain areas in Pennsylvania, such as limestone-rich regions, are more prone to sinkhole activity. Eastern and central Pennsylvania residents should particularly consider sinkhole coverage due to the underlying limestone geology that creates cavities when dissolved by groundwater.
Pennsylvania's diverse housing stock requires careful consideration of dwelling limits and coverage types:
Philadelphia and Pittsburgh feature numerous row homes and duplexes requiring careful evaluation of dwelling limits. These properties often share walls and structural elements, making adequate coverage limits crucial for complete restoration after losses.
Some rural and older homes utilize oil or coal heating systems, which can affect underwriting and may require disclosure to carriers. These systems may influence premium calculations and coverage availability.
Pennsylvania's rich history means many properties have historic designations or older construction that requires specialized coverage considerations for proper restoration.
Understanding flood zone requirements is essential for Pennsylvania homeowners. You're required to have flood insurance if you own a home or business in a Special Flood Hazard Area (SFHA) and have a government-backed mortgage. Approximately 180,884 homes in Pennsylvania are in a FEMA high-risk flood zone.
In some cases according to federal law, mortgage lenders may require a home or business owner to purchase flood insurance. Even properties outside designated flood zones should consider coverage, as nearly one-third of NFIP flood insurance claims occur outside high flood risk areas.
Multiple carriers offer competitive coverage in Pennsylvania. According to 2025 research, the top three home insurance providers in Pennsylvania are Erie, State Farm and Nationwide. As a Pennsylvania-based insurer, Erie may offer localized expertise. Homeowners looking for regional knowledge may consider working with agents familiar with state-specific risks.
Local and regional carriers also provide strong options. Penn National, Cumberland Mutual, and other Pennsylvania-based insurers offer competitive rates and regional expertise that can benefit homeowners seeking personalized service and local market knowledge.
For servicers and lenders looking to improve their customer experience while reducing operational expenses, partnering with insurance specialists can provide value. Covered offers warm transfer services that help customers find appropriate coverage while reducing call center operational costs. This partnership approach allows servicers to provide comprehensive support, helping customers secure proper coverage and reduce their exposure to rising costs while providing enhanced customer support through expert guidance.
Rates based on $300,000 dwelling coverage from multiple industry sources
Pennsylvania's position among neighboring states demonstrates its competitive advantage. Pennsylvania homeowners also pay less than homeowners in neighboring states according to available data. In New York, the average premium for $300K in dwelling coverage is $1,868 per year. In Maryland, this coverage costs $1,685 per year. Only West Virginia offers lower average premiums among immediate neighbors.
Pennsylvania's homeowners insurance market remains stable with favorable conditions for consumers. The combination of reasonable natural disaster risk, regulatory oversight, and competitive carrier presence creates an environment where homeowners can secure comprehensive coverage at competitive rates.
Property owners should focus on understanding their specific risk exposures, particularly regarding flood insurance and sinkhole coverage. Working with experienced agents familiar with Pennsylvania's unique risks helps ensure proper coverage selection and adequate protection limits.
The state's continued population growth and economic development suggest the insurance market will remain competitive, with new products and coverage options emerging to meet evolving homeowner needs. Regular policy reviews and comparison shopping help ensure homeowners maintain optimal coverage at competitive available rates.
Disclaimer: This content is for informational purposes only and not intended as legal or insurance advice. Insurance products are offered through licensed agents only. Rates and availability may vary based on individual circumstances, property characteristics, and carrier underwriting guidelines. Consumers should obtain quotes from multiple licensed providers to compare coverage options and pricing specific to their situation.
For assistance with homeowners insurance needs and personalized coverage recommendations, contact local licensed insurance professionals familiar with Pennsylvania's market conditions and risk factors.
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*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
