Living in the Sweetest Place on Earth comes with unique insurance considerations. Hershey isn't your typical Pennsylvania town. With over 3.3 million visitors flocking to Hersheypark each year, a tourism industry generating $4.37 billion in economic impact, and iconic employers like The Hershey Company and Milton Hershey School, this community of 14,334 residents has insurance needs that blend small-town charm with big-time exposure. Whether you're a homeowner near the amusement park, a business owner serving chocolate-loving tourists, or a family commuting to Penn State Health, understanding your coverage options is essential.
Understanding Hershey's Unique Insurance Landscape
Dauphin County ranks fourth in Pennsylvania for direct visitor spending at $2.73 billion, and much of that economic activity centers on Hershey. This tourism boom creates insurance scenarios you won't find in quieter Pennsylvania towns. If you own a home near Hersheypark, you might face higher property values and the temptation to rent your place to tourists during peak season. That Airbnb side hustle? Your standard homeowners policy probably won't cover it. You'll need additional coverage or a specialized short-term rental policy to protect yourself from liability claims if a guest gets injured.
The chocolate-themed community also means heavier traffic, especially during summer months and holiday events. With Hershey's average commute time of just 17 minutes and 71.6% of residents driving personal vehicles, you're sharing the roads with millions of out-of-state visitors who may not know the area. This increases your collision risk, making adequate auto liability coverage more important than in less-trafficked communities.
Auto Insurance Requirements in Pennsylvania
Pennsylvania requires minimum auto insurance coverage of 15/30/5, which breaks down to $15,000 per person for bodily injury, $30,000 per accident for all injuries, and $5,000 for property damage. You'll also need $5,000 in Personal Injury Protection (PIP) coverage. Pennsylvania is a no-fault state, meaning your own insurance pays for your medical expenses regardless of who caused the accident.
Here's the thing though: these minimums are dangerously low. If you cause a serious accident on Chocolate Avenue during the tourist rush, $15,000 won't come close to covering one person's hospital bills, let alone multiple victims. Medical costs can easily exceed $100,000 for severe injuries. You could be personally liable for the difference, putting your home, savings, and future earnings at risk. Most insurance professionals recommend at least 100/300/100 coverage, especially in a high-traffic area like Hershey.
Homeowners and Flood Insurance: What You Need to Know
Pennsylvania doesn't legally require homeowners insurance, but your mortgage lender almost certainly does. The average cost runs about $1,300 per year, or roughly $110 per month. For Hershey's median household income of $120,698, that's manageable. But here's what surprises most people: your homeowners policy won't cover flood damage. Not even close.
Flooding is Pennsylvania's most common natural disaster, and Hershey has experienced devastating events. During Tropical Storm Lee in 2011, the Swatara Creek near Hershey received 12.18 inches of rain in just four days. The creek broke its record flood stage by over 10 feet, submerging Hersheypark and surrounding areas. More recently, in July 2025, Hershey experienced flash flooding with 3 to 5 inches of rain in a short period.
Flood insurance in Pennsylvania averages $1,386 annually through the National Flood Insurance Program (NFIP), about $488 more than the national average. Even if you're not in a designated flood zone, you might want coverage. FEMA reports that 20% of flood insurance claims come from properties outside Special Flood Hazard Areas, and over 515,000 Pennsylvania properties outside these zones still face moderate to high flood risk. If you're financing your home and it's in a flood zone, your lender will require flood insurance. There's typically a 30-day waiting period before coverage kicks in, so don't wait until the forecast looks scary.
Business Insurance for Hershey's Tourism Economy
If you own a business in Hershey, you're likely serving tourists, which creates specific liability exposures. The tourism industry supports 27,570 jobs in Dauphin County and generates $288.7 million in state and local taxes. Whether you're running a restaurant on Chocolate Avenue, operating a bed and breakfast, or managing a retail shop near Hersheypark, general liability insurance is essential. It protects you if a customer slips on your wet floor, gets food poisoning, or has any other accident on your premises.
Commercial property insurance covers your building and equipment from fire, theft, and vandalism, but like residential policies, it won't cover flood damage. Given Hershey's flood history, commercial flood insurance is worth serious consideration. Business interruption insurance is another often-overlooked coverage that can save your company. If a flood or fire forces you to close during Hersheypark's peak summer season, you're losing your most profitable revenue period. Business interruption coverage replaces lost income and helps pay ongoing expenses like rent and payroll while you rebuild.
Umbrella Insurance: Extra Protection for a Unique Community
With Hershey's median home value reflecting its desirable location and strong local economy, many residents have significant assets to protect. An umbrella policy provides liability coverage above your auto and homeowners policies, typically starting at $1 million. It's surprisingly affordable, often costing $150 to $300 per year for $1 million in coverage.
Consider this scenario: you're driving home from work at Penn State Health and accidentally cause a multi-car pileup involving tourists heading to Hersheypark. Medical bills, lost wages, and pain and suffering claims from multiple victims could easily exceed $500,000. If you only have Pennsylvania's minimum 15/30/5 coverage, you're personally liable for everything above $30,000. An umbrella policy would cover the excess, protecting your home equity, retirement accounts, and future income from lawsuits.
How to Get the Right Coverage for Your Situation
Start by evaluating your specific risks. Check FEMA's flood maps to see if your property is in a flood zone, but don't stop there. Given Hershey's history with Swatara Creek flooding, even properties outside designated zones should consider coverage. Review your auto insurance limits honestly. Are you carrying enough liability coverage to protect your assets if you cause a serious accident? If you own rental property or run a business catering to tourists, make sure your policies specifically cover those activities.
Bundle your policies when possible. Most insurers offer discounts when you combine home and auto coverage, potentially saving 15-25% on premiums. Compare quotes from multiple providers, including local agents familiar with Hershey's unique characteristics. They'll understand the tourism impact, flood risks, and local conditions that national call centers might miss. Finally, review your coverage annually. As property values change, tourism grows, and your personal situation evolves, your insurance needs will shift too.
Living in the Sweetest Place on Earth offers wonderful opportunities, from world-class employment to a thriving community atmosphere. But Hershey's unique blend of tourism economy, flood risks, and heavy seasonal traffic creates insurance needs that demand thoughtful attention. The right coverage protects not just your home and car, but your financial future and peace of mind. Take the time to assess your risks, compare your options, and build a comprehensive insurance strategy that lets you enjoy everything Hershey has to offer.
