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InsuranceLecturer — If you are a homeowner in Pennsylvania, state law does not require you to have homeowners insurance. Yet most mortgage companies in Pennsylvania today will not allow for the completion of a mortgage without some type of homeowners insurance.
This makes searching for homeowners insurance in Pennsylvania almost mandatory unless you will be paying cash for the home, which almost all average homeowners cannot afford to do.
Although your Pennsylvania mortgage company will recommend an insurance company, you are not required to purchase a coverage policy from them.
Before you settle for one company, it is standard practice to search at least three different companies to find the best homeowners insurance policy to fit your needs.
Pennsylvania has some state laws and some differences in insurance that may be new if you are moving from out of state. Be sure to understand these laws before getting starting with purchasing a policy.
Two important state laws that all homeowners need to know is that Pennsylvania law allows for an insurance company to cancel your policy if you are late for a premium payment.
There is no grace period set in this law, so even if you are one or two days late on a payment, the insurance company in Pennsylvania can cancel your insurance policy.
The other important law to keep in mind is that Pennsylvania insurance companies are not allowed to cancel or not renew a policy simply because the homeowner has too many policy claims.
If your insurance company in Pennsylvania suddenly cancels your policy and their explanation is too many claims, then you have the right to take legal action.
Two very important types of insurance that you may want to consider if living in Pennsylvania are flood insurance and mine subsidence or sink hole insurance. Neither of these types of insurance are covered in a basic Pennsylvania insurance policy and will need to be secured separately.
The National Flood Insurance program deals with most flood insurance policies, although your insurance company can put you in touch with them and possibly add the flood insurance coverage to your monthly premium payment.
Mine subsidence insurance is extremely popular in Pennsylvania because of the previous coal mining industry. Many communities have old coal mines underground, which may cause a sinkhole or ground shift.
If you are in a community where there is a potential for a sinkhole, insurance companies in the state of Pennsylvania are required to offer you this type of insurance.
Keep in mind that most insurance companies in Pennsylvania divide the state into ten different geographic regions. If you are moving from one region to another within Pennsylvania your insurance rates could change drastically.
The companies set insurance rate standards depending on proximity to fire equipment and fire houses, crime rate and vandalism rates per year. In addition, they factor in the potential for other hazards such as tornados, earthquakes, sink holes, or flooding and the age and build of homes in the area.
Depending on the part of Pennsylvania you choose to live in you may have more difficulty finding an insurance company that will cover your needs. Keep in mind that Pennsylvania offers a state wide FAIR plan that guarantees all homeowners in the state should receive basic fire and crime insurance at competitive rates.
If you have had several unsuccessful attempts at securing homeowners insurance in Pennsylvania, get in contact with the Pennsylvania Department of Insurance who will forward you to the state’s FAIR plan system.
