Finding a good home insurance policy at a reasonable price is a worthy goal. The best way to go about it is by comparison shopping. We evaluated average rates for large home insurers in Vermont to help you find the best homeowners insurance in Vermont.

Cheap Home Insurance in Vermont Cost Comparison

Company Average annual home insurance cost in Vermont
Vermont Mutual
$442
$545
$701
Union Mutual
$844
MMG
$957
$1,016
$1,025
$1,050
Co-Operative
$1,078
$1,783
Source: Quadrant Information Services, based on dwelling coverage of $300,000

If you’re on the hunt for home insurance at a reasonable cost, you’ll want to compare home insurance quotes from multiple companies. Home insurance companies assess risk differently, so the price for the same policy can vary significantly among insurers. You won’t know how much you can save without comparison shopping.

But don’t ignore what each company has to offer beyond price. The best home insurance company for you will also offer coverages and home insurance discounts that match your homeowner profile.

Vermont Homeowners Insurance Cost Factors

Your chances of getting cheap home insurance in Vermont will depend on several pricing factors, such as:

  • The age of the home
  • The home’s building materials, like stone or wood
  • The cost to rebuild the house
  • The fire rating in your ZIP code
  • The claims history in your ZIP code
  • Your personal claims history
  • Your credit
  • Your deductible amount
  • The coverage amount and policy limits

What Does Vermont Homeowners Insurance Cover?

Your home is covered for any problem that is not excluded in a standard homeowners insurance policy, called an HO-3. For example, sinkholes, floods, earthquakes, war, wear and tear, power failure and insect and vermin infestations are common exclusions of an HO-3 policy.

Your personal property is covered for specific “perils” in a standard home insurance policy. Fires, vandalism, explosions and theft are just some of the problems covered by home insurance.

It’s wise to review how the different types of home insurance work to protect you before you decide how much home insurance you need.

A standard home insurance policy can be broken down into these coverage types:

  • Dwelling: This coverage pays to repair or rebuild your home, as well as attached structures, like a porch or garage, if they’re damaged by a problem covered by your policy.
  • Other structures: Gazebos, fences, barns and other structures that are not attached to your home are covered under this type of home insurance if damaged and need to be repaired or replaced.
  • Personal property: This pays to repair or replace your personal items after a problem, such as a theft or fire. This includes your clothing, furniture, jewelry, rugs, artwork, appliances and other types of items.
  • Liability: This pays for property damage and injuries you accidentally cause to others. For example, if a guest slips on your icy sidewalk, your liability insurance can pay for a settlement or court judgment against you. It also covers the cost of a legal defense.
  • Medical payments to others: Smaller medical claims for people who do not live in your house are covered under medical payments insurance. It pays regardless of who is at fault for the accident. For example, if your guest cuts their hand while helping you prepare dinner, this coverage can pay for a trip to the emergency room. Coverage amounts are typically small, such as $1,000.
  • Additional living expenses: If you are temporarily displaced due to a problem covered by your policy, like a fire, additional living expenses pays for costs like hotel bills, laundry service and even restaurant meals.

What’s Not Covered by Vermont Homeowners Insurance?

Common exclusions found in a standard HO-3 policy include problems like earthquakes, floods, sinkholes, war, power failure, nuclear hazard, wear and tear, vermin and insect infestation and intentional loss.

It’s a good idea to review your policy closely to ensure you understand what is excluded from coverage.

Flood Insurance in Vermont

A standard HO-3 policy won’t cover flood damage. But Vermont averages about 27 floods per year. You may want to consider flood insurance if your property is at risk.

Financial assistance from the government after a flood can be limited. That’s why it’s a good idea to have your own flood insurance to rely on. Most people who have flood insurance get it through the National Flood Insurance Program (NFIP), a federal program. You can also buy flood insurance through the private market.

FEMA’s Individuals and Households Program (IHP) can provide direct and financial assistance after a major disaster or emergency, if you qualify. This program helps people find housing after a problem directly caused by a disaster that’s not covered by insurance or other sources.

Earthquake Insurance in Vermont

While Vermont has not had a declared disaster for an earthquake, you might be shocked to learn the Green Mountain State has seismic activity. Vermont has a moderate risk for earthquakes according to the 2018 Long-term National Seismic Hazard Map from the U.S. Geological Survey.

If you want coverage for earthquake damage, you’ll need to buy a separate earthquake insurance policy. A standard HO-3 policy doesn’t cover earthquakes.

Earthquake insurance typically covers:

  • Dwelling
  • Other structures
  • Personal property
  • Additional living expenses

Earthquake insurance may have a separate deductible from your home insurance, typically between 10% to 25% of the dwelling’s policy limit.

Tips for Buying Vermont Homeowners Insurance

Longtime homeowners and first time home buyers have a common goal: to find a good home insurance policy at a fair price without sacrificing on coverage. Here are some home insurance shopping tips to help you find a policy:

  • Assess the cost to rebuild your home. Your dwelling coverage should cover the amount it costs to rebuild your home based on equitable materials and labor costs in your area. If you need help estimating this figure, speak with your insurance agent or a trusted contractor.
  • Go with replacement cost coverage. If you want your damaged items replaced with new items, replacement cost coverage is your best option. Actual cash value coverage will only pay the depreciated value of your items, which takes into account the age of the item and wear-and-tear use.
  • Buy add-on coverage for your valuables. A standard home insurance policy has sub-limits on certain types of items, like stolen jewelry. You may want to consider scheduling personal property so your high-value items are insured for what they’re worth.
  • Make sure your liability coverage is adequate. Generally, you want enough liability insurance to cover what could be taken from you in a lawsuit, or at least $300,000.
  • Fill in coverage gaps. If you have needs beyond what’s provided in a standard HO-3, you can typically buy more coverage. For example, you may want higher limits for landscaping.
  • Go with a financially strong company. Your bank might not finance you unless you go with an insurer that has at least an “A” financial strength rating. You can check an insurer’s financial strength rating at a company like A.M. Best or Standard & Poor’s.
  • Don’t forget about discounts. You might qualify for certain types of discounts, like a home security discount or bundling discount when you insure your car and home with the same company.
  • Get multiple quotes. The best way to find a good price is by comparing home insurance quotes from multiple companies. You can get them free online or by speaking with an independent insurance agent.

Methodology

Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with dwelling coverage of $300,000 and liability coverage of $100,000.