By: Ramu Garuda July, 23, 2019
A Gavop analysis reveals that Pennsylvania’s homeowners pay an average homeowners premium of $801, which is $427 lower than the national average of $1,228.
According to the Federal Emergency Management Agency (FEMA) estimates, the average costs for a flood insurance policy is about $700 per annum. However, Pennsylvania’s residents in low- or moderate-risk areas can buy flood insurance policies for as little as $100 per annum. Fortunately, for Pennsylvania’s homeowners residing in even the most high-risk areas, flood insurance costs are at a low rate of $500 per year.
Pennsylvania’s homeowners face multiple weather-related issues including floods, blizzards, hurricanes, and occasional tornadoes. Hurricane Sandy, for instance, resulted in more than 16 deaths and affected over 1.2 million people, who were left without electricity.
The following map charts the counties affected by Hurricane Sandy.
According to FEMA, a property has a 26% chance of being damaged by a flood during a 30-year mortgage period. A flood insurance policy doesn’t come into effect until 30 days after the date of purchase. Thus, homeowners are advised to purchase a flood insurance policy well in advance.
Another cause for concern in Pennsylvania are the powerful blizzards. Pennsylvania is one of 19 states to include a hurricane deductible in its policies. Hurricane deductibles generally range between 1% and 5%.
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.