Homeowners Insurance Guide What It Covers, What It Costs, and How to Save

Coverage A: Dwelling

Pays to repair or rebuild the structure itself: roof, walls, floors, foundation, attached garage, and built-in appliances. Set this limit to the cost to rebuild at today's prices, not the market value or purchase price. Ask for an updated replacement cost estimate at every renewal.

Coverage B: Other Structures

Covers a detached garage, shed, fence, or gazebo. The limit is typically 10% of your dwelling limit, so a $300,000 Coverage A usually brings $30,000. A large detached workshop may need more.

Coverage C: Personal Property

Replaces furniture, electronics, clothing, and other belongings after theft, fire, or another covered event. Limits typically run 50% to 70% of your dwelling limit. Policies cap some categories: the standard ISO HO-3 form limits theft of jewelry to $1,500 and theft of firearms or silverware to $2,500 each, and carriers' own forms vary. Items above those caps need a scheduled endorsement.

Coverage D: Loss of Use (Additional Living Expenses)

Pays for a hotel or rental, extra food costs, and similar expenses while your home is being repaired after a covered loss. Limits are typically 20% to 30% of your dwelling limit. Check that yours would cover several months of local rent.

Coverage E: Personal Liability

Pays legal defense and judgments if someone is injured on your property and sues. Policies typically offer $100,000 to $500,000 in limits. If you have home equity or retirement savings to protect, choose a higher limit and consider an umbrella policy on top.

Coverage F: Medical Payments to Others

Pays small medical bills for guests hurt on your property, regardless of fault and without a lawsuit. Limits are typically $1,000 to $5,000.

Flood along the Susquehanna, Schuylkill, and Delaware

Flood is excluded from every standard home policy. If your home is in a FEMA Special Flood Hazard Area and your mortgage is federally backed, your lender must require flood insurance. New NFIP policies generally carry a 30-day waiting period, according to the Insurance Information Institute, so buy it before the forecast turns. We quote NFIP and private flood with your home policy.

Mine subsidence in coal and clay country

Abandoned mines lie beneath parts of 43 of Pennsylvania's 67 counties, according to the Pennsylvania Department of Environmental Protection (DEP). Home policies usually exclude subsidence, so DEP runs its own Mine Subsidence Insurance fund. It is a separate policy, not a home endorsement. DEP lists $150,000 of residential coverage at $41.25 a year, with limits from $5,000 to $1,000,000. Licensed property agents can submit the application for you, so ask us to add it when we quote your home.

Hail and wind in central PA

Spring and summer thunderstorms bring hail and wind to the Harrisburg and Camp Hill area. Roof condition drives most carriers' pricing here, so a newer roof can keep your renewal options open and lower your premium.

Declined elsewhere? The PA FAIR Plan is the last resort

The Pennsylvania FAIR Plan offers basic property coverage for homes the private market will not insure. It is narrower than a standard homeowners policy. Before you go there, let us shop the private carriers we write, including Foremost for older and harder to place homes. For complaints or carrier questions, the Pennsylvania Insurance Department consumer line is 1-877-881-6388.

Bundle home and auto

The home and auto bundle discount averages 18%, according to Insurance.com. We quote your home and car insurance quote together, then show you whether the bundle beats two separate policies.

Replace an aging roof

A recent roof, especially Class 4 impact-resistant shingles or metal, earns a discount with many carriers and keeps you insurable at renewal. Tell us the year and material and we price it into your quote.

Add monitored protection

A professionally monitored burglar and fire alarm earns a credit with most carriers. Some also credit smart water leak sensors.

Raise your deductible, carefully

A higher deductible lowers your premium. Only choose one you could pay tomorrow from savings. We quote two or three deductibles so you see the trade-off in dollars.

Re-shop at renewal

Carriers re-price risk every year, and most cap stacked discounts at 30% to 40%, according to Insurance.com. That makes the carrier itself your biggest lever. See how the best home insurance companies for 2026 compare for Pennsylvania homes.

What does homeowners insurance cover?

A standard HO-3 policy covers six areas: your dwelling against all perils except those excluded, other structures such as a detached garage or fence, personal property against named perils, loss of use if your home is uninhabitable, personal liability if someone is injured on your property, and medical payments to guests. Flood and earthquake are the biggest exclusions.

How much homeowners insurance do I need?

Set your dwelling limit to the cost to rebuild your home, not its market value or purchase price. A carrier's replacement cost estimator, based on your square footage, construction, and local building costs, gives the right number. Personal property typically runs 50% to 70% of the dwelling limit, and many homeowners pair their liability coverage with a personal umbrella policy.

Is homeowners insurance required by law in Pennsylvania?

No. Pennsylvania law does not require homeowners insurance. However, according to the Pennsylvania Insurance Department, most banks and lenders require you to insure your home for at least the amount of the mortgage, and that requirement lasts until the loan is paid off. Without a mortgage, coverage is your choice, but the average fire and lightning claim was $88,170 from 2019 to 2023, according to the Insurance Information Institute.

How much is homeowners insurance in Pennsylvania?

Pennsylvania homeowners average $1,278 a year, about $107 a month, for $300,000 in dwelling coverage, according to Bankrate (2026). That is about half the national average of $2,424. Your price depends on your roof, the age of your home, your location, and your claims history, so comparing several carriers is the fastest way to find your real rate.

Does homeowners insurance cover mine subsidence in Pennsylvania?

Usually not. Standard home policies exclude mine subsidence, so the Pennsylvania Department of Environmental Protection sells separate Mine Subsidence Insurance. DEP lists $150,000 of residential coverage at $41.25 a year, with limits from $5,000 to $1,000,000. A licensed property agent can submit the application with your home quote.

What is not covered by homeowners insurance?

Standard HO-3 policies exclude flood, earthquake, normal wear and tear, intentional damage, business activity losses, nuclear hazard, government action, and typically sewer backup. Many policies also sublimit jewelry, collectibles, and home business equipment. In Pennsylvania, mine subsidence is also excluded. Each gap can be closed with an endorsement or a separate policy.

Does homeowners insurance cover flooding?

No. Flood damage is excluded from standard homeowners policies, including the HO-3. You need a separate policy through FEMA's National Flood Insurance Program (NFIP) or a private flood insurer. This matters most near the Susquehanna, Schuylkill, and Delaware rivers, and in FEMA Special Flood Hazard Areas, where federally backed mortgages require flood coverage.

What is the difference between replacement cost and actual cash value?

Replacement cost pays the full cost to repair or replace your property at today's prices with no deduction for depreciation. Actual cash value pays the depreciated value at the time of the loss. On an older roof, that depreciation can leave you paying a large share of the replacement yourself. Replacement cost costs more but removes that gap.

How can I lower my homeowners insurance premium?

Bundle home and auto (the bundle discount averages 18%, according to Insurance.com), replace an aging roof, install a monitored alarm, choose a higher deductible you could afford to pay, and compare carriers at every renewal through an independent agent. Most carriers cap stacked discounts at 30% to 40%, so the carrier you choose often matters most.

Does homeowners insurance cover mold?

It depends on the cause. If mold results from a sudden, covered water event such as a burst pipe or appliance overflow, the cleanup is generally covered. If it results from long-term moisture, a slow leak, or poor maintenance, most policies exclude it.

Can I get homeowners insurance as a new U.S. resident or with a thin credit history?

Yes. Most carriers will issue a homeowners policy even if your U.S. credit history is limited, and some weigh credit less heavily than others. An independent agency like Dragon Insurance can quote carriers with more flexible underwriting. You will need a valid SSN or ITIN, and your mortgage lender will require proof of insurance before closing.

What happens to my homeowners insurance if I rent out part of my home?

Renting out any part of your home, including a single room on a short-term rental platform, can leave gaps in a standard HO-3 policy, which often excludes claims tied to tenants or rental activity. Tell your carrier before you start renting, and ask about a rental endorsement or a landlord insurance quote.

Does a pool increase homeowners insurance?

Usually, yes. Insurers treat a pool as an "attractive nuisance" that can draw children and guests who may be injured, so it raises your liability exposure. Many carriers require a perimeter fence, a self-closing gate, or a safety cover as a condition of coverage. If you own a pool, consider a higher liability limit or a personal umbrella policy.

What is the average cost of homeowners insurance in 2026?

The national average is about $2,424 a year for $300,000 in dwelling coverage, according to Bankrate (2026). Pennsylvania averages about $1,278 a year for the same coverage, according to the same Bankrate data. Your actual rate depends on rebuild cost, roof age, location, claims history, and the carrier, which is why Dragon compares Liberty Mutual, Openly, Westfield, Plymouth Rock, and Foremost for PA homes.