Pennsylvania Home Insurance

Pennsylvania has one of the most affordable homeowners insurance markets in the country, with an average premium around $1,150/year — well below the national average. The state benefits from low catastrophic-event frequency, a competitive carrier market, and reasonable regulatory oversight from the Pennsylvania Insurance Department.

Average rates

Pennsylvania’s average annual premium is around $1,156. By region:

• Philadelphia metro: $1,400-$2,000/year
• Pittsburgh metro: $1,200-$1,700/year
• Lehigh Valley (Allentown, Bethlehem): $1,100-$1,500/year
• Harrisburg / Lancaster region: $1,000-$1,400/year
• Rural Western PA: $700-$1,100/year
• Pocono / NE Pennsylvania: $900-$1,300/year

Pennsylvania doesn’t have the hurricane risk of coastal states, the wildfire risk of California, or the hail frequency of the Plains states. The main risk drivers are winter weather (snow load, ice dams, frozen pipes), thunderstorms, and aging housing stock.

Older housing — a major factor

Pennsylvania has one of the oldest housing stocks in the country, particularly in Philadelphia, Pittsburgh, and the older industrial cities. A meaningful fraction of insured homes were built before 1940.

Older homes affect insurance in several ways:

1. Replacement cost is high — pre-1940 construction (plaster walls, hardwood floors, period millwork) costs more to rebuild than modern construction.
2. Knob-and-tube wiring can be a coverage barrier — many carriers won’t write or require replacement.
3. Old plumbing (galvanized steel, polybutylene) is a frequent claim source and may affect coverage terms.
4. Coal-fired furnaces and oil tanks — buried oil tanks in particular create environmental liability concerns.

If you’re buying an older PA home, factor in:

• An insurance inspection that might require updates before binding
• Higher dwelling coverage than the home’s market value (replacement cost can exceed market price)
• Service line coverage (often a worthwhile endorsement on older homes)

Mine subsidence

Pennsylvania has a unique risk: mine subsidence. Large portions of Western Pennsylvania, especially the Pittsburgh region, sit over abandoned coal mines. When old mine workings collapse, surface damage can be catastrophic.

The Pennsylvania Mine Subsidence Insurance Program (MSI) provides coverage that standard homeowners policies typically exclude:

• Available statewide for any residence above mapped mine areas
• Coverage up to $500,000 dwelling
• Premiums typically $100-$300/year depending on mine activity and coverage amount

If you live in a mine subsidence zone, this is mandatory in practice — your homeowners policy won’t cover it.

Flood and ice

Pennsylvania flood risk is moderate but real. Major rivers (Susquehanna, Delaware, Allegheny, Monongahela) flood periodically. Standard homeowners insurance does NOT cover flood — you need NFIP or private flood insurance if you’re in a flood plain.

Winter weather damage is the most frequent claim type in PA:

• Frozen pipe bursts — typically covered, but verify how your policy handles “vacant home” exclusions
• Ice dam damage — usually covered
• Snow load roof collapse — covered under most policies for residential structures

Who writes well in Pennsylvania

PA is a highly competitive market with many carriers actively writing:

• Erie Insurance — Pennsylvania-headquartered, consistently rated #1 for customer satisfaction in regional studies, strong on claims
• State Farm — large PA market share
• Allstate — broad availability
• Nationwide — Ohio-based, strong in PA
• Travelers — broad availability
• USAA — military-affiliated
• Farmers — competitive in some PA markets
• PEMCO / Encompass — regional options

For older homes specifically, Chubb and AIG Private Client Group write higher-end policies that handle the replacement cost and aesthetic concerns of historic Pennsylvania architecture.

Bundling discounts

Pennsylvania is one of the better states for bundling discounts. Combining auto + home with the same carrier typically saves 10-25%, and PA carriers compete aggressively on bundle pricing.

Erie and State Farm offer some of the strongest bundle savings; Nationwide and Allstate are also competitive.

What to look for

Pennsylvania-specific considerations:

1. Replacement cost coverage — older homes often need dwelling limits 1.5-2x their market value to actually rebuild
2. Service line endorsement — covers underground water/sewer pipe failures, especially valuable on older homes ($30-$50/year typically)
3. Mine subsidence coverage — if you’re in a known mine area, this is essential
4. Sewer/water backup coverage — older Philadelphia and Pittsburgh sewer systems make this a higher-probability claim
5. Heating system age — old boilers and furnaces affect underwriting

Shopping strategy

In Pennsylvania:

1. Always include Erie in your quote shopping — they’re often the best combination of price and service in the state
2. For older homes, get an independent agent involved — they can shop multiple carriers and surface ones that handle older properties well
3. Bundle aggressively — PA is one of the highest-payoff bundle markets
4. Verify the dwelling limit covers true replacement cost, not just market value

Pennsylvania is one of the more straightforward U.S. home insurance markets. The biggest mistakes are underinsuring older homes and not capturing available bundling discounts.