There's something special about owning a home in Hershey, Pennsylvania. Maybe it's the sweet smell of chocolate that occasionally drifts through town, or the fact that you're living in a community that Milton Hershey himself designed with workers' well-being in mind. But here's what many new Hershey homeowners don't realize: insuring a home in this unique planned community comes with its own considerations that go beyond your typical Pennsylvania coverage.
Whether you're buying one of the historic homes on Chocolate Avenue with their early 1900s charm, a modern ranch in the countryside, or a condo near Hersheypark, you need insurance that accounts for Hershey's diverse housing stock, weather patterns, and yes, even its tourism-driven economy. Let's break down what you really need to know about protecting your home in America's sweetest place on Earth.
Understanding Hershey's Housing Market and Insurance Needs
Hershey's housing market has seen significant growth, with median home prices jumping 23.2% to around $380,000 in early 2025, with some properties reaching $499,000. That's substantially higher than many surrounding Pennsylvania communities, and it means your dwelling coverage needs to keep pace. If you're still carrying coverage based on what you paid for your home a few years ago, you might be seriously underinsured.
The diversity of housing in Hershey adds another layer of complexity. Milton Hershey's original worker homes, built between 1903 and 1905, featured modern amenities for their time—electricity, indoor plumbing, central heating. Today, these historic properties mix with everything from Hershey Trust Company farmhouses to modern apartments and new developments like Hershey West End. Each housing type has different insurance considerations, replacement costs, and risk factors.
For 2025, Pennsylvania homeowners are paying an average of $1,911 annually for home insurance, or about $159 per month. The good news? Dauphin County, where Hershey is located, tends to have more competitive rates than many other parts of the state. Areas near Harrisburg offer some of the lowest home insurance rates in Pennsylvania, which can benefit Hershey residents shopping for coverage.
Weather Risks: Snow Storms Matter More Than Floods
Here's something that surprises many Hershey homeowners: flooding isn't your primary concern. Hershey sits in FEMA flood zone X, meaning it's at moderate flood risk from 500-year events rather than 100-year floods. Flood insurance isn't mandatory here, and the community has relatively low flood event risk compared to other Pennsylvania areas.
But before you skip flood coverage entirely, consider this: over 40% of flood insurance claims in Pennsylvania come from outside designated high-risk areas. All 67 Pennsylvania counties have experienced destructive flooding, and the average payout for flood claims exceeds $78,000. At around $1,386 annually for Pennsylvania flood insurance, it might be worth the peace of mind, especially during spring thaw and summer storm seasons.
Winter weather is where Hershey homeowners need to focus their attention. Snow storms pose a high risk in this area, bringing the potential for roof collapse from snow and ice buildup, frozen pipes, and water damage from ice dams. Your standard homeowners policy covers damage from the weight of snow or ice and wind damage, but here's the catch: you'll need to prove regular maintenance. If your roof caves in because you didn't clear heavy snow or your pipes freeze because you didn't maintain proper heating, your claim could be denied.
What Your Hershey Home Insurance Actually Covers
Standard Pennsylvania homeowners insurance includes four main coverage types. Dwelling coverage protects the physical structure of your home and attached structures like your garage. Given Hershey's rising property values, review this annually to ensure you're carrying enough coverage to rebuild at current construction costs, not what you originally paid.
Personal property coverage protects your belongings—furniture, electronics, clothing, and more. Most policies cover 50-70% of your dwelling coverage amount for personal property. Liability coverage is crucial, especially if you live near Hersheypark or Chocolate World and occasionally rent out a room to tourists. If someone gets injured on your property, liability coverage protects you from lawsuits and medical expenses. Additional living expenses coverage pays for hotel stays and meals if your home becomes uninhabitable due to covered damage.
What's not covered matters just as much. Standard policies don't cover flooding, earthquakes, or normal wear and tear. They also won't cover damage from lack of maintenance or neglect. If you own one of Hershey's historic properties with unique architectural features, standard coverage may not adequately protect period details or specialized construction methods—you might need an endorsement or specialized policy for full protection.
How to Save on Hershey Home Insurance
With Pennsylvania homeowners insurance rates jumping 44% between 2021 and 2024, finding savings is more important than ever. The most effective strategy is shopping around. Companies like Allstate offer Pennsylvania coverage for as low as $1,180 annually, while Erie Insurance, State Farm, Farmers, and Nationwide also provide competitive rates. Get quotes from at least three insurers to compare.
Bundling your home and auto insurance with the same company typically saves 15-25%. Installing a monitored security system, smoke detectors, and burglar alarms can earn you discounts. Since winter weather is Hershey's primary risk, upgrading your roof, installing ice dam prevention systems, or improving your home's winterization can both reduce your risk and potentially lower your premiums.
Raising your deductible from $500 to $1,000 or even $2,500 can significantly lower your premium. Just make sure you have enough savings to cover the higher deductible if you need to file a claim. And here's something worth knowing: filing one legitimate storm-related claim typically won't raise your rates in Pennsylvania. However, filing multiple claims within two to three years might flag you as higher risk, so save claims for major damage rather than minor repairs.
Special Considerations for Hershey's Tourism Economy
Hershey attracts millions of tourists annually to Hersheypark, Chocolate World, and other attractions. The tourism season runs heavily during summer months, with Hersheypark open daily through September 1st. If you're considering renting out a room, basement apartment, or entire property during peak tourism season, your standard homeowners policy likely won't cover you.
Most homeowners policies exclude coverage when you're running a business from your property, and short-term rentals count as business activity. You'll need either a business policy endorsement or a separate short-term rental insurance policy. This provides liability coverage if a guest is injured, property coverage for damage caused by renters, and loss of income coverage if your property becomes uninhabitable. Don't risk it—one uncovered liability claim from a tourist could devastate your finances.
Getting the Right Coverage for Your Hershey Home
Start by getting multiple quotes from insurers with strong Pennsylvania reputations. Erie Insurance consistently ranks as the best home insurance company in Pennsylvania for 2025, but also check Allstate, State Farm, and Nationwide. When comparing quotes, don't just look at the premium—compare coverage limits, deductibles, and what's actually included.
Document your home's current condition and value. Take photos or video of your property, including special features. Create a home inventory of your belongings with photos and receipts. This documentation becomes invaluable if you ever need to file a claim. For historic Hershey properties, consider getting a professional appraisal to ensure your coverage reflects true replacement cost.
Owning a home in Hershey means being part of Milton Hershey's legacy of community and quality. Protecting that investment with the right insurance coverage ensures you can enjoy your piece of chocolate town for years to come. Take the time to get quotes, understand your coverage, and adjust your policy as your home's value increases. Your home is worth it—and so is your peace of mind.
