Landlord Insurance in Pennsylvania: Costs, Requirements & Best Providers

Old housing drives Pennsylvania premiums

Philadelphia’s rowhomes, Pittsburgh’s hillside frame houses and the twins and doubles of Allentown, Reading, Scranton and Harrisburg are often 80 to 120 years old. Insurers price that age, and they look closely at:

• Wiring. Knob-and-tube or fuse panels can lead to a decline.
• Heating. Old boilers and oil tanks raise both fire and leak risk.
• Plumbing. Galvanized supply lines and cast-iron drains are common sources of water claims.
• Shared walls. In attached housing, fire and water spread between units.

Updating the electrical panel or the supply lines before you shop gives you more carriers to choose from.

Mine subsidence is its own policy

Pennsylvania is one of the few states where the government sells the coverage directly. The Mine Subsidence Insurance program, run by the Department of Environmental Protection, covers damage from collapsing abandoned mines, which standard landlord policies exclude as earth movement. It’s most relevant in western Pennsylvania’s bituminous region and the northeastern anthracite region around Scranton and Wilkes-Barre. It’s sold separately from your landlord policy, so you have to ask for it.

Flood from rivers and storms

The Susquehanna, Delaware, Schuylkill and Allegheny have a long history of flooding, and Ida in 2021 flooded neighborhoods along the Schuylkill and in the Philadelphia suburbs. Landlord policies exclude flood. Coverage comes from the National Flood Insurance Program or a private flood carrier, usually with a 30-day wait. Sewer backup into a basement is a separate endorsement.

Winter claims

Frozen pipes are the classic Pennsylvania rental claim, especially in units left vacant between tenants. Dwelling policies typically exclude freeze damage when heat wasn’t maintained, and coverage tightens once a property has been vacant for a set period, often 60 days.

Philadelphia’s extra paperwork

In Philadelphia, you need a rental license and a Certificate of Rental Suitability before you can evict, and nonpayment cases go through the Eviction Diversion Program first. That can stretch the time a unit sits without rent. Loss-of-rent coverage won’t help there, because it pays only after a covered loss such as a fire.

What lenders require

Lenders require a landlord (dwelling) policy naming them as mortgagee, with dwelling coverage at least equal to the loan or rebuild cost. Flood insurance is mandatory on federally backed loans in a mapped high-risk zone, and investor lenders usually require loss-of-rent coverage.

Ways to pay less

1. Replace knob-and-tube wiring or fuse boxes before shopping.
2. Install water leak sensors in basements and under kitchens in attached homes.
3. Raise your deductible to $2,500.
4. Require renters insurance with liability in every lease.
5. Insure several rentals with one carrier. Obie offers portfolio policies, and Steadily writes small multifamily.

Pennsylvania deposit rules

Under 68 P.S. §§ 250.511a-250.512, the deposit can be up to two months’ rent in the first year and one month’s rent from the start of the second year. Deposits held long term must go into an interest-bearing escrow account. Return it within 30 days with an itemized list, or you lose the right to withhold and can face double damages.