With a homeowners insurance policy, your insurance company will cover the cost of structural and personal property damage and liability claims in exchange for a monthly insurance premium. Keep reading to learn about your best homeowners insurance options.
Best Home Insurance Companies in Philadelphia
Liberty Mutual, Farmers, and Travelers stuck out as the best home insurance providers in Philadelphia because of their affordable home insurance coverage options, discounts, and customer service.
1. Liberty Mutual
Liberty Mutual typically offers a variety of homeowner discounts, which is usually more than what’s offered by Farmers and Travelers. The discounts keep Liberty Mutual premiums affordable and range from being claims-free to having a new roof and signing up for paperless billing.
Here are some other Liberty Mutual benefits:
- Has over 100 years of experience in the home insurance industry
- Offers a unique endorsement for hurricanes
- Has insurance agents available 24/7
Farmers offers the most customizable homeowners insurance coverage. While other providers have a set percentage of coverage for other structures, personal property, and additional living expenses, Farmers allows you to select how much coverage you want. You can go up to 200% of dwelling coverage for other structures and personal property, and you have the choice of 10%, 20%, or 30% for additional living expenses.
As a Farmers customer, you would enjoy the following benefits:
- Up to $2 million of liability protection
- Deductibles split up by peril
- Discount for not smoking in the home
Travelers gave us the cheapest quote out of the providers in the review. The quote was for $72 per month, which is lower than the national average of about $101 per month. In addition to affordability, Travelers has over 160 years of industry experience.
See what else Travelers has to offer:
- Up to $10,000 per person of medical payments to others coverage
- Deductible as high as $50,000
- Up to 100% of dwelling for loss of use coverage
Philadelphia Home Insurance Coverage
Home insurance in Philadelphia covers six coverage areas:
- Dwelling—This type of coverage protects the structure of your home, which includes the interior and exterior walls, foundation, cabinetry, and other parts that are built into the home. This should also cover the complete cost of rebuilding your home.
- Other structures—This covers other structures on your property, like fences, sheds, and detached garages. It’s usually expressed as 10% of your dwelling coverage amount.
- Personal property—This protects your personal belongings and covers them regardless of where they are, which means they’ll be covered inside your home, on a trip, and in your car. Personal property coverage is typically 50% of dwelling coverage.
- Additional living expenses/loss of use—Your insurance provider will reimburse you for living expenses acquired while you were living outside of your home due to repairs. This includes the cost of staying in a hotel and the cost of meals. It’s usually 20% of dwelling coverage.
- Liability—If you’re responsible for an event that injures someone or damages their personal property, your policy pays medical bills and replacement costs. We recommend purchasing at least $300,000 of protection in this category.
- Medical payments to others—If a guest is injured in your home, your provider will cover medical bills. It’s standard to purchase $1,000 of protection per person.
How Much Does a Home Insurance Policy Cost in Philadelphia?
According to the Insurance Information Institute, the average cost of homeowners insurance in Pennsylvania in 2017 was $931—a little over $77.50 per month. That made Pennsylvania the 39th-most expensive state for home insurance in the country.
Although the state as a whole provides home insurance that’s more affordable than the national average, Philadelphia will likely be close to or higher than the national average because it has a higher cost of living than the rest of Pennsylvania. Since Philadelphia’s housing market can be expensive, it will take more money to rebuild your home, so you’ll need to purchase more coverage which could increase your premium.
Factors to Consider Before Buying Home Insurance
To help you find the right policy for your home, here’s a list of factors to consider as you begin your search:
- Weather—Philadelphia’s temperatures drop during the winter, and several feet of snow is not uncommon during those months. Make sure your policy covers damage from snow so that you don’t have to cover the cost yourself.
- Discounts—The best way to save money on a policy is to look for discounts. Most insurance providers will offer discounts for being claims-free, having home safety features, and bundling home and auto insurance.
- Pets—In general, insurance companies will increase your insurance rate if you have a dog breed, like a pit bull or German shepherd, that’s historically considered aggressive. We recommend looking at companies like State Farm or AAA that decide liability coverage for dogs based on the dog’s attack history, not the breed.
Personal property coverage type—Personal property coverage protection can come in two forms: actual cash value (ACV) or replacement cash value (RCV). ACV policies only cover the cost of replacing your belongings based on their depreciated value. RCV policies cost a little more, but they give you enough money to replace the items as new.
Compare Home Insurance Coverage Options
|Other structures coverage limits||10% of dwelling||5%–200% of dwelling||1%, 5%, 10%, 25%, 50%, 75%, or 100% of dwelling|
|Personal property coverage limits||70% of dwelling||40%–200% of dwelling||20%, 30%, 50%, 75%, or 100% of dwelling|
|Liability coverage limits||$100,000, $200,000, $300,000, or $500,000||$100,000, $300,000, $500,000, $1 million, or $2 million||$100,000, $300,000, $500,000, or $1 million|
|Unique add-ons||Water backup, sump overflow, hurricanes||Building ordinance or law, marring to metal roof materials||Equipment breakdown, roofing, siding matching package|
|Customer service||24/7 for claims; limited for sales and service||24/7 for claims; limited for sales and service||24/7 for claims; limited for sales and service|
*Based on sample quotes
FAQs About Home Insurance
How is the cost of homeowners insurance calculated?
Homeowners insurance companies use a variety of factors to decide how much your premium will cost. Here are a few common factors used to calculate pricing:
- Proximity to a fire station and fire hydrant
- Credit score
- Number and type of pets
- Claims history
- Cost to rebuild your home
- Whether your home is high risk
Who should have homeowners insurance?
If the institution that gave you a loan to buy your home requires homeowners insurance, you’ll have to purchase a policy. We recommend that every homeowner purchase a policy to protect their home and budget if an unexpected event or damage were to occur.
Is home insurance worth it?
If an event like a fire were to damage the structure of your home and all of the belongings inside, you likely wouldn’t have the budget to repair or replace your items. Homeowners insurance gives you peace of mind that those costs will be taken care of in exchange for a premium and deductible.
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