FACT SHEET: Pennsylvania’s Home Insurance Crisis
Last Updated: 8/22/25
Thanks to climate change, property insurance companies are raising rates in Pennsylvania. Between 2021 and 2024, home insurance rates in the Keystone State increased by 44%. Increasing storm severity and flood risk are major drivers of Pennsylvania’s insurance crisis. Trump’s cuts to disaster relief and tariffs will make Pennsylvania’s home insurance crisis even worse.
PENNSYLVANIA’S HOME INSURANCE RATES HAVE SOARED IN RECENT YEARS, AND COSTS CONTINUE TO GROW
- Between 2019 and 2024, home insurance rates in Pennsylvania increased by 33%.
- In 2024 alone, home insurance rates in Pennsylvania increased by 14%.
- Pennsylvania was projected to see insurance rate increases in 2025, with the average annual premium expected to increase by $111, or 7%.
- Between 2021 and 2024, home insurance rates in Pennsylvania increased by 44% to nearly $2,000, the fourth-highest increase nationwide.
- Between 2021 and 2024, home insurance rates in the Philadelphia metro area increased 38%, while rates in the Pittsburgh metro area increased by 42%.
- In 2023, there were 7,278 home insurance non-renewals in Pennsylvania.
CLIMATE CHANGE AND EXTREME WEATHER ARE DRIVING PENNSYLVANIA’S INSURANCE CRISIS
- Pennsylvania homeowners faced a 7% increase in property insurance premiums in 2023 due to the impacts of climate change.
- In 2023, only 1.6% of owner-occupied homes in Pennsylvania had flood insurance.
- Given the increased severity of storms, Pennsylvania’s Insurance Department and the Pennsylvania Emergency Management Agency encouraged homeowners to purchase flood insurance, which is not typically covered under home insurance policies.
- In 2024, the Pennsylvania Insurance Department blocked $180.3 million in annual property and casualty insurance premium increases through its rate review processes, saving consumers $42.9 million in homeowners/dwelling fire premiums.
- Over the last forty years, Lycoming County has had one of the highest rates of claims from FEMA’s National Flood Insurance Program (NFIP) in the state.
- Since 1980, FEMA’s National Flood Insurance Program has allocated more than $57 million to pay roughly 3,000 claims in Lycoming County.
- From 2013 to 2023, Pennsylvania property owners filed more than 7,580 claims with the FEMA National Flood Insurance Program.
- The private flood insurance market in Pennsylvania grew from around 1,500 policies in 2016 to almost 16,000 policies in 2023.
TRUMP WILL MAKE PENNSYLVANIA’S INSURANCE CRISIS EVEN WORSE
- Trump’s tariffs were expected to increase home insurance costs in Pennsylvania by $54.
- Tariffs were expected to slow down disaster recovery efforts and make them more expensive. The National Association of Home Builders estimates a cost increase of $10,900 per home due to tariffs on construction materials.
- Trump’s cuts to disaster relief at the Department of Housing and Urban Development and attempts to disband FEMA would also increase the cost of home insurance.