Best cheap home insurance in Philadelphia in 2024

The best home insurance companies in Philadelphia

According to Bankrate’s research, USAA, Erie, Allstate, State Farm and PURE may be some of the best home insurance options in Philadelphia. While price is an important decision factor for many homeowners, it is not the only thing to think about when choosing an insurance company. To find the best home insurance companies in Philadelphia, our team considered average rates, coverage options, discounts, financial strength scores, J.D. Power rankings, accessibility and more. We converted these metrics into our proprietary Bankrate Score out of 5, and only chose providers with scores of 3.0 and above.

The cheapest home insurance companies in Philadelphia

The cost of living in Philadelphia is slightly above the national average, which may tighten some homeowners’ insurance budgets. To help homeowners find affordable rates, Bankrate’s insurance editorial team compiled average rates from the cheapest home insurance companies in Philadelphia.

How much is home insurance in Philadelphia, PA?

The average cost of home insurance in Philadelphia is $1,672 for a policy with a $300K dwelling limit. This puts Philadelphia home insurance costs 37 percent more than the statewide average of $1,233. Philadelphia is the largest and most densely populated city in the state, and typically, insurance risks are higher in areas with greater population density.

Knowing the citywide average can help you set expectations about what you’ll pay for your policy. But home insurance rates are unique to the homeowner. Different rating factors like your credit, home age and deductible can all affect what you pay for your home insurance.

Philadelphia rates by credit tier

In Pennsylvania, home insurance companies are allowed to look at your credit rating when setting your insurance premium. In most cases, homeowners with good or excellent credit get the cheapest rates, while those in the average or poor credit tiers usually pay more. If you’re struggling with high home insurance costs, taking the steps to build up your credit could help you get a lower rate. Small steps could help you see a big difference when your policy comes up for renewal.

Philadelphia rates by home age

If you’re in the market for a home, keep the construction year in mind, as it affects the cost of insurance. Generally, newer homes are seen as lower risk by insurance companies and may be cheaper to insure. Older homes, especially ones with older roofs, could be more prone to damage. The median home age in Philadelphia is 93 years old, which could make home insurance more expensive for some.

Philadelphia rates by deductible amount 

When you’ve exhausted every other option, consider raising your home insurance deductible for a lower premium. Your home insurance deductible is the amount of money you are financially responsible for after you file a covered claim. The more of the financial responsibility you shift away from the insurance company, the cheaper your rate will likely be. In the table below, you can compare average home insurance premiums by deductible from the cheapest home insurance companies in Philadelphia.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze November 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

• Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our homeowners: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts.

Year built: Rates were calculated based on the following years built for homes and assigned to our homeowners: “1959, 1982, 1992, 2010, 2016 (base) and 2020.”

Bankrate Score

Our Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.