If you're buying a home in Philadelphia—or already own one—you've probably noticed something distinct about the city's architecture. Those iconic row homes with shared walls, historic brownstones in neighborhoods like Rittenhouse and Society Hill, and charming century-old properties throughout the city create a unique insurance landscape. Your Philadelphia home isn't like a suburban single-family in the burbs, and your insurance needs aren't quite the same either.
Here's what makes insuring a Philadelphia home different: you're dealing with shared walls that connect your property to your neighbors', historic features that might need specialized coverage, and—perhaps most surprisingly—urban flooding that can happen almost anywhere in the city, not just near the Schuylkill or Delaware rivers. Understanding these factors can save you thousands of dollars and major headaches down the road.
Row Homes and Shared Walls: What You Need to Know
Walk down any Philadelphia street and you'll see them: rows of attached homes sharing party walls with their neighbors. These shared walls are more than just architectural character—they significantly impact your insurance coverage and costs.
The good news? Many Philadelphia row homes feature brick-on-brick party walls, and insurance companies love this. These solid masonry walls are far more fire-resistant than wood-frame construction, which translates directly into discounts on your homeowners policy. When you're shopping for insurance, make sure your agent knows about your brick construction—it could shave hundreds off your annual premium.
But shared walls also mean shared risks. What happens next door can directly impact your home. If your neighbor undertakes major construction that damages the party wall, or if they experience a fire, flood, or infestation, your property could be affected too. This is why it's crucial to work with an insurance agent who understands row home construction. They'll ensure your policy adequately covers damage that originates from neighboring properties and spreads through shared structures.
Your standard HO-3 homeowners policy should cover your dwelling, but verify that it includes proper protection for party walls and damage that might affect multiple units. Ask your insurer specifically about coverage for structural damage to shared walls and what happens if construction next door causes problems on your side of the property line.
Insuring Historic Homes and Historic Districts
Philadelphia is home to countless historic properties, from colonial-era townhouses to Victorian mansions. If you own a historic home—or you're buying in a designated historic district—you might be worried that your insurance costs will skyrocket. Here's the truth: historic designation itself doesn't increase your insurance rates.
Insurance companies don't ask whether your home is historically designated. What they care about is the physical reality: your home's age, construction materials, electrical and plumbing systems, roof condition, and any updates you've made. Historic designation doesn't change these factors, so it shouldn't change your premium. Whether your home is on the historic register or not, a 120-year-old property with original knob-and-tube wiring is a higher risk than one with updated electrical systems.
That said, older homes do come with unique insurance considerations. Replacement costs can be higher because you may need to source specialty materials or hire craftspeople with specific skills to maintain historic integrity. If you have ornate plasterwork, original hardwood floors, stained glass windows, or other period features, you'll want to ensure your dwelling coverage is high enough to replace these items at current costs—not just their depreciated value.
For truly unique historic properties, you might need specialty coverage beyond a standard homeowners policy. HO-8 policies are designed specifically for older homes where replacement cost coverage might be impractical. Alternatively, high-value home insurance can provide the generous coverage limits and customization needed for exceptional historic properties. Talk to your agent about which approach makes sense for your home's value and unique features.
Urban Flooding: The Risk You Can't Ignore
Here's something that surprises many Philadelphia homeowners: flooding can happen anywhere in the city, and your standard homeowners insurance doesn't cover it. Not even a little bit.
While FEMA maps show just 2,500 Philadelphia properties in the traditional 100-year floodplain, climate risk experts at First Street estimate that nearly 110,000 properties actually face flood risk when you account for urban flooding from heavy rainfall. This is a massive difference. Neighborhoods like East Falls and Manayunk along the Schuylkill River are obvious flood risks, but intense rainstorms can overwhelm drainage systems throughout the city, causing basement backups and street flooding even blocks away from any river or creek.
During Hurricane Ida, residents and businesses in areas that hadn't flooded in a century found themselves underwater. Some businesses had to close for nearly a year. The financial devastation was enormous—and many didn't have flood insurance because they weren't in a mapped flood zone.
Flood insurance in Philadelphia typically costs around $75 per month through the National Flood Insurance Program (NFIP), though your actual rate depends on your specific flood risk and coverage level. Since 1999, NFIP has paid out over $1 billion in flood claims in Philadelphia alone. Currently, only about 3,700 Philadelphia properties carry flood insurance—a tiny fraction of the homes actually at risk.
You can buy flood insurance through the NFIP at floodsmart.gov or through private insurers. Just remember: there's a 30-day waiting period before coverage takes effect, so don't wait until a storm is forecast to buy a policy. And if you experience recurring basement backups during heavy rain, check out Philadelphia's free Basement Backup Protection Program. The city will send licensed contractors to install backwater valves and make plumbing upgrades at no cost to qualifying homeowners.
What Does Home Insurance Cost in Philadelphia?
Philadelphia homeowners pay an average of $1,910 per year for home insurance, though your actual cost will vary based on your coverage limits, deductible, location, credit score, and home characteristics. That's noticeably higher than the Pennsylvania state average of about $1,101 annually and makes Philadelphia one of the more expensive cities in the state for home insurance—similar to Chester and Altoona.
For a typical policy with $300,000 in dwelling coverage and $100,000 in liability protection, you might pay anywhere from $1,654 to $2,742 per year depending on your insurer and specific circumstances. Row homes with brick construction often get discounts, while homes with older roofs, outdated electrical systems, or higher crime neighborhood locations may see higher premiums.
Your credit score plays a significant role in your premium in Pennsylvania, as insurers use credit-based insurance scores to assess risk. Even small improvements to your credit can translate into meaningful savings. Similarly, bundling your home and auto insurance with the same company typically triggers multi-policy discounts of 10-25%.
Getting the Right Coverage for Your Philadelphia Home
Finding the right home insurance for your Philadelphia property starts with understanding what makes your home unique. Is it a row home with shared walls? Does it have historic features or outdated systems? Is your basement prone to water issues during storms? These factors should guide your coverage decisions.
Start by getting quotes from multiple insurers—rates can vary by hundreds or even thousands of dollars for identical coverage. Look for companies with experience insuring Philadelphia row homes and historic properties. Ask specifically about discounts for brick construction, security systems, and bundling policies.
Make sure your dwelling coverage reflects current replacement costs, not just your purchase price. In Philadelphia's competitive real estate market, rebuilding costs can exceed property values, especially for homes with custom or historic features. Consider replacement cost coverage rather than actual cash value—it costs more upfront but pays you to replace items at current prices rather than their depreciated value.
Don't forget about liability coverage. A standard policy includes $100,000, but you might want to increase this to $300,000 or $500,000—or add an umbrella policy for an extra million dollars in protection. If someone gets injured on your property, or if your dog bites a neighbor, liability coverage protects your assets and future earnings.
Finally, seriously consider flood insurance regardless of whether you're in a mapped flood zone. At roughly $75 a month, it's relatively affordable protection against a catastrophic financial loss. Philadelphia's changing climate and aging infrastructure mean flood risk is increasing, not decreasing. Protecting your most valuable asset with comprehensive coverage—homeowners insurance plus flood insurance—gives you the peace of mind to enjoy your Philadelphia home without worrying about what the next storm might bring.
