By: Ramu Garuda August, 16, 2019
Pennsylvania’s homeowners pay an average homeowner's insurance rate of $1,227 per annum, which is on par with the national average of $1,228 per annum. The average property cost in Pennsylvania is about $154,164. Langhome reports the highest average home insurance rate of $1,741 per annum.
Insurance companies account for multiple factors when calculating a homeowner’s insurance rate. Many of these factors are out of the homeowners’ control such as the age of home, probability of natural disasters, age of the home, and property location.
However, there are several factors, which are discussed below, within the homeowner’s control. Homeowners can avail multiple discounts by taking these factors into consideration.
Enhancing the property’s safety level: Homes with burglar alarms, sprinkler systems, smoke detectors, CCTV cameras, and other safety features can be considered for huge discounts. Pennsylvania has an average of 4.2 burglaries per 1,000 homes, which is close to the national average of 4.6 burglaries per 1,000 homes. According to the FBI, the property offense rate is 1,649.4 per 100,000 residents.
Bundling: Pennsylvania’s homeowners can save about 20% by buying their home and auto insurance from the same insurance firm.
Property location: Farmers offer a home insurance rate as low as $372 in Pittsburg, whereas residents in Philadelphia pay an average homeowner's insurance rate of $1,988.
Superior construction: Fire-resistant constructions with exterior walls, floors, and roofs made from combustible material can significantly reduce home insurance rates.
Being a non-smoker: A larger number of house fires are caused by something as simple as a cigarette bud. Households that are completely smoke-free are generally given small discounts.
Updated electrical systems: Homes with updated electrical systems such as high-quality wiring and heating systems with good safety levels earn homeowners discounts on their insurance premiums.
Full payments: Insurance firms give homeowners who pay their insurance premium in full a discount.
Going green: Some companies offer discounts to customers who submit their paperwork electronically.
Swimming pools: In remote locations that may not be sufficiently equipped with fire protection measures, such as fire hydrants, the fire department can use the water from homeowners' swimming pools to douse a fire. Thus, homeowners with swimming pools are often given discounts by insurance firms.
Automated bank payments: Setting up a monthly or yearly auto payments from your bank accounts can help save about $50-$100 annually.
Not filing claims frequently: Insurance companies perceive customers who frequently file insurance claims as a risky investment. Thus, customers who do not file for claims often earn a discount from the insurance firm.
New roof: Properties with new roofs might be eligible for a discount depending on the insurance firm.
Annual payments: Paying an annual insurance rate can be much cheaper than the combined monthly rates for the same duration.
Comparing insurance rates: The rates offered by insurance companies may drastically vary for the same policy. Homeowners can save significant amounts by comparing the rates offered by different firms.
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.