The average annual home insurance rate in Philadelphia is $2,034 for a policy with a $1,000 deductible and $300,000 in dwelling coverage — cheaper than the national average of $2,377 but higher than the Pennsylvania state average of $1,306.

Philadelphia homeowners likely pay higher rates than elsewhere in Pennsylvania because cities have higher crime risks than less-populated areas. Philadelphia also has a risk of flooding in some areas, like Eastwick and South Philadelphia. Insurers consider these risks when determining premiums, but you can still find cheap coverage.

You should compare home insurance quotes before buying a policy. Here’s what else you should know about home insurance in Philadelphia.

Best home insurance companies in Philadelphia

In the Philadelphia area, homeowners have plenty of good home insurance companies to choose from, but the best company won’t be the same for everybody. Every insurer sets premiums differently because insurance companies consider rating factors uniquely. The right insurance company for you depends on your home insurance coverage needs and claims history. 

Start your search for quality coverage at an affordable price below, with four of the best home insurance companies in Philadelphia. The average annual premiums provided reflect the cost of a policy with $300,000 in dwelling coverage and a $1,000 deductible.

Cheapest rates: Allstate

Best insurer for high-value homes: Westfield

Best insurer for customer service: Cumberland Mutual

Best insurer for veterans, active military, and their families: USAA

Cheapest home insurance in Philadelphia

Allstate has the cheapest home insurance in Philadelphia, with an average rate of only $84 per month and $1,004 per year.

Check out the table below to compare premiums from the cheapest home insurance companies in Philadelphia. The average premiums below reflect costs for a $300,000 dwelling policy with a $1,000 deductible.

Cost of homeowners insurance in Philadelphia

The average cost of homeowners insurance in Philadelphia is $2,120 per year for a $500 deductible policy with dwelling coverage of $300,000 — a policy with a $1,000 deductible costs $2,034. Your exact rate depends on your location within the city, how much coverage you buy, and the company you choose. The higher the coverage limits, the more expensive your rate will be.

Other factors that will likely affect your rate include the size of your home, its age, local building costs, your deductible, and even your credit history. It’s essential to compare home insurance quotes from multiple insurance companies before buying a policy.

Cost of homeowners insurance by dwelling coverage amount

The factor that most significantly affects how much you pay for home insurance is your dwelling coverage amount. It’s the most crucial part of your home insurance policy — it pays for personal property damage after a covered loss. But the higher your dwelling coverage limits, the more expensive your premium will be.

Check out the table below to see just how much your average annual premium can increase when you select higher dwelling coverage limits for your house. The premiums below are for home insurance policies in Pennsylvania with a $1,000 deductible.

Cost of homeowners insurance by deductible

Your homeowners insurance deductible is how much you’ll need to pay out of pocket for a claim before your home insurance coverage kicks in. Home insurance deductibles are usually between $500 and $2,000. Your deductible also affects your premium; the lower your deductible is, the more expensive your premium will be.

Check out the table below to see how your premium can vary based on your deductible. Premiums are for a policy with $300,000 in dwelling coverage in Pennsylvania.

How to get cheap homeowners insurance in Philadelphia

You can try a few tips to find cheap homeowners insurance in Philadelphia, including:

Pennsylvania homeowners insurance rates by city

Home insurance prices vary by city and even by ZIP code because different areas around town have different risks. For example, certain parts of the city may experience higher rates of vandalism, theft, or break-ins that lead to higher insurance premiums. And if you live close to a fire station, you may pay lower premiums.

Philadelphia is a major city, so naturally, it has higher rates than the state average due to more potential claims risks. Home insurance companies consider this, along with various other factors, when setting rates.

Check out the table below to see how home insurance premiums vary across cities in Pennsylvania for a policy with $300,000 in dwelling coverage and a $1,000 deductible.

How much homeowners insurance do you need in Philadelphia?

Though Pennsylvania law doesn’t require you to have any homeowners insurance at all, it’s a good idea to buy it. Home repairs following damage can get expensive quickly for homeowners without help from an insurance company. In most cases, if you have to take out a mortgage on your home, your lender will require you to have home insurance.

When buying a policy, the 80/20 rule is a good guideline to follow. You should get coverage equal to or greater than 80% of your home’s replacement cost. No matter how much dwelling coverage you decide to purchase, it’s important to know what your home insurance policy covers.

What are some of the biggest risks when owning a home in Philadelphia? 

The following natural disasters pose the biggest risks to homes in Philadelphia: