By: Ramu Garuda June.14, 2019
As part of a recent survey on home insurance rates in Pennsylvania, Gavop analyzed the annual report published by the National Association of Insurance Commissioners to rank the top home insurance providers by market share and premium offered. Gavop found that Truck Insurance Exchange, a subsidiary of Farmers Insurance Group, offers the cheapest median premium at $1,011. It is, in fact, $216 less than the state median of $1,227. State Farm follows at second, with a median premium of $1,103. Allstate is third with a median premium of $1,276, $49, which is more than the state median. At just $9 more, Nationwide is fourth, with a median premium of $1,285.
The figure below shows the market share of the top providers, along with the median premiums offered by them.
A Brief Guide to Pennsylvania Home Insurance
In Pennsylvania state, homeowners pay a relatively low home insurance premium, with a median rate at $61 less than the national medin rate at $1,288. However, there are a few things that insurance buyers should consider when buying a policy such as deductibles, liability coverage, flood insurance, and claim history.
In every home insurance agreement, customers have to decide on a deductible amount, which is the money they will pay out of their pocket in the event of a claim. Usually, deductible slabs are in multiples of $500. Choosing the right deductible is very important, as the premium depends on it. Even though choosing a higher deductible can lower the premium, it is not wise to go for a high deductible if you cannot afford to finance a significant sum of money for quick repairs.
Claim history is another factor that influences insurance rates. If a homeowner has made more than two claims in a period of 10 years, it usually does not sit favorably with providers.
In Pennsylvania, the winter snow can be a potential hazard. To prepare for any accidents, such as someone slipping on the snow on your property, it is a wise decision to buy adequate liability coverage, which will take care of the person’s medical costs.
The state is also always on the verge of being flooded by heavy rains. Talk to your insurer about flood insurance coverage, which will provide more coverage than water damage from leaky pipes.
Home Insurance Premium Variation by City
Gavop has listed the home insurance median rates in all 94 cities of Pennsylvania in the table below.
|Rank||City||Average Insurance Rate|
Erie – the fourth largest city by population – has the cheapest median premium (at $904) in the state. Philadelphia – the largest city by population – has the most expensive median premium (at $2,087).
Gavop also ranked five of the largest cities by population and listed the median premium in each. The findings are illustrated in the infographic below.
Ramu is a research analyst with over 9 years of analytics & research experience. Prior to joining the company, he worked with some of the prominent consulting and market research firms in India, including Pride Technology (Supporting consulting projects to PWC), RR Donnelly, and The Hackett Group. His skills include company profiling, benchmarking, data and trend analysis, industry analysis, and report writing across the industries. Ramu holds a Master’s degree in Finance and Marketing. He also has a bachelor’s degree in Biotechnology.